Hana Securities analyzed on the 20th that the value of Olive Young will be fully reflected in CJ, greatly enhancing the shareholder value of CJ. The target stock price was raised from 140,000 won to 180,000 won, and the investment opinion was maintained as 'buy.'
Choi Jeong-wook, an analyst at Hana Securities, noted, "CJ is more likely to merge with Olive Young rather than go for an initial public offering (IPO)," and added, "If the possibility of an IPO has disappeared, the downside risk of CJ's stock price is judged to be limited."
He further explained, "The expected equity value of Olive Young is estimated to be at least 3 trillion to 3.5 trillion won, while CJ's market capitalization is only 3.7 trillion won," and stated, "Considering current revenue, the corporate value of Olive Young is at least 6 trillion to 7 trillion won or more."
He added, "The intrinsic value of Olive Young can be maximized, and when considering CJ's stock price, if the merger ratio is relatively favorable and the exercise of minority shareholders' rights to demand the purchase of stocks decreases, the merger will come to the surface," and concluded, "This may ultimately correlate with the situation of CJ's stock price."