[Click eStock] "Pearl Abyss Delays Red Desert Release... Investment Rating and Target Price Downgraded"

[Asia Economy Reporter Hwang Yoon-joo] On the 28th, SK Securities evaluated Pearl Abyss with some disappointment due to the delayed expected release schedule of 'Red Desert.' Accordingly, they downgraded the investment opinion to 'Neutral' and lowered the target stock price to 43,000 KRW.

Researcher Lee So-jung of SK Securities stated, "The expected release schedule for Pearl Abyss's PC/console blockbuster ‘Red Desert’ has been postponed to the fourth quarter of 2023 or 2024."

Lee analyzed, "Sales of 260 billion KRW (4 million units sold) are expected in the first quarter," adding, "Cumulative sales of 6 million units are anticipated, and mid-to-long-term revenue from in-app purchases is also expected."

However, Lee emphasized, "If the results fall short of expectations, valuation pressure will be inevitable, and since the next new title ‘Dokkaebi’ is scheduled for release a year later, the importance of this new title's performance is very high."

He added, "Due to the downward revision of multiples for similar companies and the delay in the new release schedule, the investment opinion has been downgraded to Neutral, and the target stock price has been lowered from 69,000 KRW to 43,000 KRW."