[Special Stock] "Decreased Predictability"... Pearl Abyss Down Over 4%

Pearl Abyss's stock price is weak following a securities report predicting that the release of Red Desert is likely to be possible only by the end of next year. In particular, the report pointed out that next year's earnings estimates and communication predictability have both declined, excluding Pearl Abyss from the industry's top preferred stocks.

As of 10:54 a.m. on the 16th, Pearl Abyss was trading at 28,600 KRW, down 1,500 KRW (4.98%) from the previous trading day.

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On the same day, Kim Jin-gu, a researcher at Kiwoom Securities, said, "Considering video and multiple media-based mentions, the realistic release timeline for Red Desert appears to be December next year. This is even later than Kiwoom Securities' previously conservative estimate of the third quarter of next year," and lowered Pearl Abyss's target stock price from 57,000 KRW to 46,000 KRW. Although maintaining a buy rating, the stock was excluded from the top preferred stocks in the gaming sector.

Researcher Kim said, "Pearl Abyss has repeatedly commented that 'Red Desert game development is in its final stages,' but it may be necessary to internally review whether this has actually increased the market's predictability." He added, "Based on the decrease in next year's expected earnings estimates and the decline in Pearl Abyss's communication predictability, the target price-to-earnings ratio (PER) is lowered from 22.5 times to 20 times."

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