Yuanta Securities announced on October 13 that it has lowered its target price for Krafton from 380,000 won to 330,000 won, reflecting a decrease in PC sales and rising costs. However, it maintained its investment opinion at 'buy,' stating that the success of new titles beyond 'PUBG' is crucial for a reevaluation of the stock price.
Choi Ji-woon, a researcher at Yuanta Securities, projected third-quarter revenues and operating profits at 1.117 trillion won and 261.1 billion won, respectively. He noted that while the consolidation of ADK will contribute to growth, the decline in PC sales and increased costs will lead to a year-on-year decrease in profits, with operating income expected to fall short of market consensus.
He added that the absence of major events for 'PUBG PC' in the third quarter and a drop in sales following the initial launch of 'Subnautica 2' will be reflected in the results. Additionally, advertising and commission expenses are expected to rise due to participation in Gamescom, the development of well-made modes, and new titles.
Looking ahead to the fourth quarter, Choi anticipates a recovery in PC sales, with vehicle and idol collaborations and two well-made modes set to be released sequentially. He expects a rebound in PC sales compared to the previous quarter, given that major events are concentrated in the fourth quarter.
Choi emphasized that the performance of new titles will be key to future stock price evaluations. He mentioned that in 2027, titles such as 'Pale World Mobile' and 'Enjoy,' along with five games revealed at Gamescom, are expected to launch. As specific release dates for many new titles have yet to be disclosed, the momentum for these releases is expected to become clearer as schedules are finalized.
Furthermore, he analyzed that while PUBG's performance is expected to remain robust in 2027, confirmation of the success of new titles beyond PUBG is necessary for further re-rating.
* This article has been translated by AI.
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