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Source = Pearl Abyss |
[Alpha Biz= Reporter Kim Sangjin] KB Securities lowered the target price for game developer Pearl Abyss from KRW 52,000 to KRW 42,000, reflecting delays in the release of the new title Crimson Desert. The delays have also made downward adjustments to the company’s annual earnings forecasts inevitable.
KB Securities stated, “Pearl Abyss unveiled a new trailer for Crimson Desert during The Game Awards (TGA) and announced its release date for late next year, which is later than the previously expected third quarter of next year. This will lead to a steep downward revision in earnings estimates for next year and will also impact the release date of the next title, DokeV, making it necessary to lower the earnings forecast for 2026 as well.”
The brokerage firm predicted that the company’s annual operating loss for this year would widen to KRW 25 billion, compared to the previous estimate of KRW 24 billion. Additionally, the annual operating profit forecast for next year has been slashed by 34%, from KRW 142 billion to KRW 94 billion.
KB Securities also pointed out, “With the rapid aging of the Black Desert IP (intellectual property) and the planned termination of the Black Desert Mobile service in China starting January next year, Pearl Abyss will lack momentum from new releases until the launch of Crimson Desert at the end of next year.”
The firm added, “Although the current stock price reflects a 12-month forward price-to-earnings (P/E) ratio of 17.8x, indicating undervaluation potential, investors should be prepared for a long wait until the new release event. Additionally, factors such as the confirmation of a release date could increase stock price volatility, posing a risk.”
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
