April 20, 2024
Stocks & Bonds
[EQUITIES] ‘NCSoft set back by new game launch delay’
NCSoft has pushed back releasing its next likely hit, said KTB Investment and Securities on Feb. 13, lowering the target price to 500,000 won (US$445.39) from 550,000 won.
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Its operating profit from the fourth quarter last year plummeted 41 percent from a year ago to 112.6 billion won, missing market expectations, and the launch of “Lineage 2M” has been rescheduled so revenue from the game will be reflected from September, said analyst Lee Min-a.
Its stock price will inevitably fall in the short term, forecast the analyst, lowering the net profit estimate for this year by 20 percent.
Considering the lack of competition, “Lineage 2M” will likely be a success, and the game maker’s stock price will rebound from mid-2019. Domestic revenue from “Lineage M” also remains solid, and it is generating stable revenue in Taiwan as well, she said, maintaining a “buy” recommendation.
By Hwang You-mee (glamazon@heraldcorp.com)
