April 20, 2024

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[THE INVESTOR] Innocean Worldwide’s recent stock price is lower than that of its peers, and should be an opportunity to purchase, said HI Investment and Securities on June 8, maintaining a “buy” recommendation and 97,000 won (US$90.51) target price.

As domestic advertising industry gradually recovers and with a larger marketing campaign for launching a new car worldwide its prospects for earnings improvement this year are bright. Kia Motors’ US sales operation’s creative agency David and Goliath will be able to contribute 50 billion won in annual gross profit, said analyst Kim Min-jeong.

Canvas Worldwide, a US branch established in 2016, is fast expanding its clientele, and its two operations will join hands. Although expansion from global sports events has dipped, the Russian FIFA World Cup still is boosting expectations. Hyundai Motor Group, as the official partner of the soccer event, is rolling out new models and is concentrating its efforts to expand in Russia. Gross profit from Europe and emerging markets will spike from this month, said the analyst. 

The ad industry has entered a high season and expectations for growing overseas are pushing the stock price gradually. Innocean’s gross profit and operating profit this year will increase 20 percent and 22 percent, respectively, said Kim. 

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