[Featured Stock] 'Prolonged Deficit' KakaoPay Down 3.31%

The stock price of Kakao Pay, which has been experiencing prolonged deficits, is on a downward trend. As of 11:46 AM on the 27th, Kakao Pay was trading at 26,250 KRW, down 900 KRW (3.31%) from the previous trading day. This is the 52-week low. Reports from the securities industry have also cut the target price by more than half.

On the same day, Heeyeon Lim, a researcher at Shinhan Investment Corp., said, "The prolonged deficit has increased the valuation (stock price relative to corporate value) burden," lowering the target price from 64,000 KRW to 30,000 KRW. The buy rating was maintained.

Researcher Lim pointed out, "The recent stock price hit a new low. The main culprit of the plunge is valuation." He added, "As interest rate cuts become more visible in the second half of the year, interest in growth stocks will expand. A short-covering inflow could lead to a short-term rebound," but he also noted, "However, without fundamental improvement in corporate value, stock price recovery will be limited."

He further added, "A risk factor is the 32% stake held by the second largest shareholder, Alipay, but at the current stock price level, the possibility of an overhang (potential sell-off volume) is low."