[THE INVESTOR] NCSoft’s recent stock price adjustment is a good opportunity to purchase, said NH Investment and Securities on Dec. 28, maintaining a “buy” recommendation and 640,000 won (US$596.85) target price.
As revenue from “Lineage M” remains stable, its fourth-quarter earnings will rise significantly on-year, and revenue will reach 587 billion won with operating profit of 211.7 billion won, estimated analyst An Jae-min.
The mobile game’s success in Taiwan reaffirmed that the game developer can succeed overseas as well, and raises expectations for upcoming releases including “Blade & Soul 2,” “Lineage 2M” and “Aion: Tempest,” said the analyst.
Nonetheless its stock price dipped from lack of new games in the first quarter next year as well as concerns over regulations in China and tax probe, but considering the lineup, investors may continue buying shares, according to An.
New releases next year will push its earnings, while expanding its mobile lineup and sales overseas, added the analyst recommending it as a “top pick” among game stocks.
By Hwang You-mee (email@example.com)