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Kyobo Securities Must Watch “Kakao Damages and Market Share Changes … Lower Target”
Input: 2022-10-21 15:34:25
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By Kim Jin-ho, rplkim@busan.com staff reporter
Kyobo Securities lowered its target price on the 21st, citing the need to watch for damages and changes in future traffic share for Kakao, which caused a major service ‘breakdown’ due to a recent data center fire.
Kim Dong-woo, a researcher at Kyobo Securities, said of Kakao, “In the process of follow-up measures such as compensation for damage caused by data center fires in October and strengthening system stability, we need to check whether service reorganization is delayed. or changes in the share of mobility traffic do not affect growth potential.”
Aside from the current situation, Kakao’s operating profit in the third quarter was expected to be 172.4 billion won, lower than the market consensus of 183.2 billion won. Sales in the third quarter were expected to gain 1.88 trillion, in line with market expectations.
Researcher Kim said, “Transaction sales showed a recovery from the previous quarter through the use of delivery products such as Korean beef, which were in high demand during the Chuseok holiday in ‘Gift as a gift’, but the reorganization of ‘Talk Store & Makers’ pause.”
“We lowered our target price from 110,000 won to 87,000 won given the delay in trade restructuring, the value of the stake in listed subsidiaries and the sharp drop in the prices of global technology majors,” he said.
By Kim Jin-ho, rplkim@busan.com staff reporter
