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Photo = Krafton |
[Alpha Biz= Paul Lee] NH Investment & Securities has analyzed that Krafton’s stock, which sharply dropped after its earnings announcement, is likely to rise again.
NH Investment & Securities stated, "After the Q3 2024 earnings release, just like the current situation, there were concerns about a peak-out in earnings, leading to a stock correction. However, the stock rebounded afterward, and we expect a similar scenario this time around."
Krafton recently announced a 300 billion KRW investment in its Q4 earnings report, raising concerns about the associated costs, which led to a drop in its stock price.
NH Investment & Securities noted, "There has already been an annual increase in personnel costs of around 100 billion KRW, and considering that the staffing investments are aimed at expanding the pipeline, we believe the market's concerns are excessive." They also pointed out that due to the recent stock decline, Krafton's P/E ratio for 2025 has fallen back to around 10 times, entering an attractive valuation zone.
As a result, NH Investment & Securities has maintained its "Buy" rating and target price of 550,000 KRW for Krafton.
They added, "With high growth expected for PUBG, the stock will also reflect expectations for upcoming titles such as EnjoY, Subnautica 2, Black Budget, Blindspot, and Valor."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
