April 20, 2024

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[THE INVESTOR] NCSoft stocks will continue to rise until the launch of its new game “Lineage M,” said KB Investment and Securities on May 22, raising the target price to 490,000 won (US$438.68) from 440,000 won. 

Set to be released on June 21, it will be the game developer’s first mobile version of MMORPG and more than 4 million reservations have been made, the highest number for a Korean game, said analyst Lee Dong-ryun. 

The success of Netmarble Games’ “Lineage 2: Revolution” proves that there is a strong demand for mobile MMORPG and the new game is likely to be a hit, said the analyst forecasting that its average revenue will reach 1.67 billion won. Revenue from “Lineage M” in the second half will reach 321 billion won, on par with the revenue of “Lineage 1” for the whole year, according to Lee. 

NCSoft’s stocks have been significantly influenced by its new releases -- the timing, feedback for pilot tests, and traffic and revenue after the release -- and this new game will propel the price surge, said the analyst.

“The valuation premium will peak with the launch and the stock price will move in accordance with the early earnings and traffic.” 

By Hwang You-mee (glamazon@heraldcorp.com)