Korea Investment & Securities said on the 22nd that while the additional downside risk for SOOP is limited, it will take time until changes for a rebound in the share price are confirmed. It maintained a Buy rating and a target price of 105,000 won. SOOP's previous trading day closing price was 69,500 won.
Korea Investment & Securities analyzed that SOOP's sluggish share price is not recovering easily. Although there were no major changes in earnings estimates, the valuation based on the 2026 market consensus (average forecast) fell to an all-time low of 7.5 times as the share price declined.
Jung Ho-yoon, a researcher at Korea Investment & Securities, said, "Twitch, which once divided the domestic personal streaming market, has exited, but CHZZK has successfully filled the gap and emerged as a new competitor," and noted, "The activation of personal streaming through YouTube is also an unwelcome trend."
It added that an unfavorable market environment combined with slowing growth in the core platform division is leading to a decline in valuation.
The revenue growth rate of SOOP's platform division has fallen to 1.7% as of the third quarter this year. In the case of SOOP's revenue growth, increases have been driven more by average revenue per paying user (ARPPU) than by users. Korea Investment & Securities estimated that monthly ARPPU is approaching the 100,000-won range and projected that additional upside potential would be limited.
Researcher Jung explained, "An expanded profit contribution from the advertising division, which continues relatively high growth, and, in the long term, the creation of results from platform expansion in Southeast Asia are expected to be key factors that can lead a share price rebound."
At the same time, it predicted that downside risk would be limited because the valuation has already fallen sufficiently. However, it said it will take some time until changes for a share price rebound are confirmed.