MERITZ Securities analyzed on the 24th that SHIFT UP will pass its momentum peak in the second quarter of this year, lowering both its investment opinion and target stock price. The investment opinion was downgraded from 'Buy' to 'Hold,' and the target stock price was lowered from 90,000 won to 70,000 won. The closing price of SHIFT UP's previous trading day was 58,700 won.
Research Institute Lee Hyo-jin from MERITZ Securities explained, "The second quarter is the time when all the events that have been waited for since SHIFT UP's listing will materialize." 'Stella Blade,' which was exclusively released on PlayStation 5 last April and achieved sales of 1.8 million copies, will be released on the game platform Steam this June. MERITZ Securities forecasted that the cumulative sales of Stella Blade will reach 4.62 million copies by the end of the year.
Additionally, MERITZ Securities assumed that the Chinese launch of SHIFT UP's game 'NIKKE' will be in May. The Chinese license for NIKKE was issued in October last year, and marketing began in January of this year. The game is also expected to undergo a Sentinel test from the 28th to the 7th of next month. This researcher analyzed that "30% of NIKKE's early global launch performance will be achieved in China."
This researcher noted, "The upcoming second quarter is expected to be a time when all events are reflected, leading to high stock price volatility. However, considering the lead of the stock price, it is determined that this will be a period passing through the highest momentum in the next two years, making it a time to satisfy profit realization desires rather than new investments."
He further stated, "The unexpected supply event in March and the reduced momentum period are somewhat disappointing," adding that "if the global NIKKE, excluding China, shows growth transitions or if the performance of the Chinese NIKKE exceeds expectations in the third quarter, the appropriate stock price will be revised upwards."
MERITZ Securities analyzed that SHIFT UP will enter a consolidation phase after exhausting its momentum in the second quarter. This researcher stated, "In terms of stock price, it is expected to take a rest focusing on defending the sales of existing titles until the next new release, 'Witches Project.' Witches Project is expected to be released in 2027."