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| ' Naver Webtoon |
[Alpha Biz= Reporter Kim Sangjin] On the 22nd, Webtoon Entertainment, the parent company of Naver Webtoon listed on the NASDAQ, saw its stock price surge by over 16%. This rise is attributed to Goldman Sachs highlighting Webtoon Entertainment's growth potential and setting a target price for the stock that is more than three times its current price.
The stock closed at $23.85 on the 22nd, marking a 16.97% increase. Although the stock price had been trading below the IPO price of $21 for 13 consecutive trading days from the 2nd to the 19th, it recovered to the IPO price with this surge. On its first trading day, the 27th of the previous month, Webtoon Entertainment's stock ended at $23, a 9.5% increase from the IPO price, but had since shown weakness.
The price increase was influenced by Goldman Sachs issuing a "Buy" rating on Webtoon Entertainment and setting a 12-month target price of $62. Goldman Sachs noted that "Webtoon Entertainment's business model, which includes paid content and advertising, is a key driver of long-term growth potential" and projected an annual revenue growth rate of over 20% through 2029. They also mentioned that "discussions about expanding the webtoon business in the North American market are ongoing, and webtoons align well with long-term growth themes."
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
