April 26, 2024

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[THE INVESTOR] Naver will show earnings improvement in the short term and continue to grow, said Hana Financial Investment on Jan. 26, maintaining a “buy” recommendation and 1.09 million won (US$1,023) target price. 

Its earnings slightly missed market expectations in the fourth quarter last year but its main services remain strong, said analyst Hwang Seung-taek. Revenue from display ads was slower than expected despite being a high season due to the Chuseok holidays, explained the analyst. 

Revenue from its business platform mainly based on search ads reached 574.4 billion won, beating market consensus, boosted by improvement in search capability in shopping and product ranges, noted Hwang.

Its overall business is running smoothly, including payment service, contents, and Snow application, and bolstered by the steady growth in revenue, its profits will rise, forecast the analyst. 

The internet giant is maintaining its dominant position in ad market and the shopping sector will further advance its growth, he added maintaining a “top pick” rating.

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