Shinhan Investment Corp. analyzed on the 17th that Devsisters is expected to achieve quantum jump-level growth if 'Cookie Run: Tower of Adventures' becomes a hit. The investment opinion 'Buy' and the target price of 88,000 KRW were maintained.
Kang Seok-oh, a researcher at Shinhan Investment Corp., said about Devsisters, "The stock price has declined for over a month due to overhang concerns," and explained, "We understand that the shares held by Com2uS are unlikely to be released to the market in the short term, so we strongly recommend buying."
He evaluated, "Devsisters experienced losses for two years due to the absence of new titles and business expansion after the success of 'Cookie Run: Kingdom,' but it is a process all developers go through to operate multiple new projects to release one or two new titles annually after securing one or two cash cows."
He emphasized, "Unlike at the time of the release of 'Cookie Run: Kingdom,' steady growth is expected due to accumulated operational and marketing experience, several pipelines to look forward to after 'Cookie Run: Tower of Adventures,' and overseas expansion plans," adding, "As the global recognition of the Cookie Run intellectual property (IP) has increased, it is expected to improve profit margins through more efficient resource allocation."
Researcher Kang explained, "'Cookie Run: Tower of Adventures' had positive results from the global CBT conducted earlier this year, and if it becomes a hit, quantum jump-level growth is expected," estimating, "It is expected to record initial daily sales of over 800 million KRW with more initial users and higher average revenue per paying user (ARPPU) than 'Cookie Run: Kingdom.'"
He said, "The success of 'Cookie Run: Tower of Adventures' is expected to lead to a significant multiple rerating not only due to performance growth but also because it reproduces a 'planned hit' through the design capabilities of mobile casual content and business models (BM)."
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