May 11, 2024

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[THE INVESTOR] Naver’s stock price has fallen to the lowest level but it may rebound on the back of its Japanese subsidiary LINE’s new business, said Mirae Asset Daewoo on July 1, maintaining a “buy” recommendation and 1 million won (US$929.63) target price. 

The decline is accelerating since its first-quarter earnings dipped from investment costs and concerns are rising regarding the controversy over news articles on its website. LINE’s new business, however, could lead to a growth momentum. The Japanese subsidiary is earnestly expanding its business portfolio, including establishing a fintech unit in January next year. It is expected to unveil a detailed business model on June 28, and this could be favorable for its revenue, said analyst Moon Ji-hyeon.

The controversy over news articles will fade out as the firm has announced changes. The unfavorable factors have already been reflected to a certain extent and its stock price will rebound, she added.

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