[THE INVESTOR] Naver has posted an earnings surprise, said NH Investment and Securities on Oct. 27, raising the target price to 1 million won (US$885.90) from 950,000 won.
Its revenue in the third quarter reached 1.2 trillion won and operating profit was 312.2 billion won, approximately 6 percent higher than analyst estimates, noted analyst An Jae-min. Revenue from business platforms grew faster than expected and advertising sector remained stable while its subsidiary Line boosted the bottom line, he explained.
Concerns over weak short-term earnings considering the heavy investments has been weighing down the stock price but fourth-quarter earnings guidance will alleviate this considerably, said An.
Its long-term policy to evolve into a technology platform company is fairly positive, added the analyst maintaining a “buy” recommendation.
By Hwang You-mee (glamazon@heraldcorp.com)