] Eugene Investment & Securities on Oct. 18 lowered the target stock price of Kakao
from the previous 130,000 won (US$115) to 100,000 won, as the internet giant is showing no immediate signs of earnings turnaround.
The securities firm predicted the company’s third-quarter operating profit at 21.4 billion won, a 19.4 percent decline from the previous quarter. Revenue was estimated to see a slight increase of 0.3 percent to 377.7 billion won.
“In order to elevate the stock price, earnings should be improved. Despite its immensely popular mobile messenger, its new businesses, including online-to-offline services, are not making tangible profits,” the firm said.
But the firm maintained its “buy” recommendation, saying the new businesses would start contributing to earnings from next year.
By Lee Ji-yoon (firstname.lastname@example.org