IBK Securities on the 21st said Devsisters' third-quarter 2025 results fell short of market expectations and cut its target price to 43,000 won from 50,000 won. Devsisters' closing price the previous day was 32,450 won.
On a consolidation basis in the third quarter of this year, Devsisters posted revenue of 54.9 billion won and an operating loss of 700 million won. Revenue fell 23.8% from a year earlier, and operating profit swung to a loss from a year earlier. That missed the market consensus of 63.4 billion won in revenue and 2.8 billion won in operating profit.
IBK Securities analyzed that the hit from lower sales was large as major games focused on small updates. However, it said a recovery in results is expected next year.
Lee Seung-hoon, a researcher at IBK Securities, said, "The new title 'Cookie Run: OvenSmash' is confirmed for release in March next year," and added, "In the fourth quarter, large-scale updates for major games will resume, and a rebound in sales is expected through season events."
The researcher explained, "We lowered the target price to reflect the reduction in the earnings-per-share (EPS) estimate due to delays in next year's new releases."
He continued, "As we expect performance improvement next year with the fifth-anniversary update of 'Cookie Run: Kingdom' in the first quarter and the release of the new title 'Cookie Run: OvenSmash,' we are maintaining our investment opinion."