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Kakao. (Photo = Yonhap news) |
[Alpha Biz= Reporter Paul Lee] Korea Investment & Securities lowered its target stock price for Kakao, saying concerns about its growth are being highlighted, especially in the content business. Korea Investment & Securities presented Kakao's target price at 68,000 won, which is 9.3% lower than before. The investment opinion remained 'buy'.
Korea Investment & Securities estimated Kakao's operating profit in the first quarter of this year to be 110.8 billion won, down 31.1% from the previous quarter. The figure is below the market average of 146.3 billion won.
"Both commerce and advertising will continue to grow year-on-year, but sales will decline compared to the fourth quarter due to the off-season for advertising," said Korea Investment & Securities. "Entertainment businesses such as SM and media are also expected to be sluggish."
Korea Investment & Securities also said, "Kakao advertising has a strong growth of messaging ads despite the economic recession, but the sluggish performance of its content division seems to be holding back its performance," adding, "Kakao Entertainment's dramas are also experiencing difficulties in programming, causing delays in the production schedule."
Alphabiz Reporter Kim SangJin(hoondork1977@alphabiz.co.kr)
