[Click eStock] "Shift Up Faces Disappointing New Release Gap... Target Price Lowered"

On October 27, Shinhan Investment & Securities reported that Shift Up has entered a period without new releases and lowered its target price from 66,000 won to 45,000 won. The investment opinion was maintained as 'Buy'.

Kang Seokoh, a researcher at Shinhan Investment & Securities, stated, "We lowered the target price in line with the revised earnings estimates," adding, "Although we applied a higher price-to-earnings ratio compared to domestic game companies, as Shift Up is one of the few developers achieving results on global multiplatforms, the downward revision of the 2026 earnings forecast and the lack of new releases have reduced market interest in the stock."

Shift Up's third-quarter results this year are expected to meet market expectations. Researcher Kang analyzed, "Shift Up is expected to post operating revenue of 73.6 billion won in the third quarter, up 26.8% year-on-year, and operating profit of 46.4 billion won, up 30.4%, which is in line with the consensus (the average forecast of securities firms) of 46 billion won for operating profit." He added, "The downward stabilization of 'Goddess of Victory: Nikke,' released in China in the previous quarter, and 'Stellar Blade,' released on PC, has begun."

There is an opinion that new game information releases are necessary for a stock price recovery. Researcher Kang commented, "'Project Spirit' and 'Stellar Blade 2' are expected to be released after 2027, which means the company will enter a new release gap in 2026." He emphasized, "The key will be defending performance during this gap through updates to existing storylines and intellectual property (IP) collaborations." He added, "Marketing and information releases related to new game development are necessary for expectations to be reflected in the stock price."

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