April 20, 2024
Stocks & Bonds
[EQUITIES] ‘DoubleUGames still undervalued’
[THE INVESTOR] DoubleUGames remains strong but is still underappreciated, said Shinhan Investment on June 16, maintaining a “buy” recommendation and 74,000 won (US$65.07) target price.
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Its stock price has risen by 50 percent following the acquisition of US social casino game developer DDI, but through improving management efficiency, profits can grow, said analyst Lee Mun-jong.
DDI’s operating profit ratio will reach 33 percent next year, from the current 25.7 percent, forecast the analyst pointing out that first-quarter operating profit ratio of DoubleUGames was 40.7 percent.
The number of combined daily active users for both companies tallies up to 2.38 million won and through cross-promotion, revenue from both existing and new games could rise, added Lee.
By Hwang You-mee (glamazon@heraldcorp.com)
