Hanwha Investment & Securities said on the 2nd that additional performance growth is expected for NAVER in the second half of the year. They maintained a 'buy' rating and raised the target price from the previous 300,000 won to 340,000 won, a 13.4% increase. NAVER's stock price closed at 262,000 won on the previous trading day.
Kim So-hye, a researcher at Hanwha Investment & Securities, noted that in the second half of the year, in addition to the simple fee increase effect, an expansion in total transaction volume (GMV) market share is expected due to improvements in delivery and essential goods competitiveness. She maintains the existing outlook that commerce performance is likely to improve as the second half progresses.
According to Kim, a growth rate of about 20% compared to the same period last year is expected in commerce advertising, driven by optimization of the print media and an increase in inventory.
Hanwha Investment & Securities estimates that NAVER will record sales of 2.91 trillion won and operating profit of 538.1 billion won in the second quarter (April to June) of this year. Both sales and operating profit align with market average forecasts.
Kim explained, "While stock prices have risen significantly due to recent expectations, it is time to confirm movements and numbers from the financial and cloud sectors to raise the multiples (valuation multiples) low point."
Analyses have emerged suggesting that the government's sovereign artificial intelligence (AI) related policies are expected to provide both direct and indirect benefits in the short term. It is explained that these government policies are likely to lead to a reevaluation of the value of NAVER's existing cloud business unit.