[Featured Stock] Securities Firms Say "Undervalued Range"... Kakao Games Up 5.80%

Kakao Games, which has entered a valuation range below a price-to-book ratio (PBR) of 1, is rebounding amid securities firms' analysis that it is excessively undervalued.

As of 10:18 a.m. on the 22nd, Kakao Games was trading at 18,230 KRW, up 1,000 KRW (5.80%) from the previous trading day. IBK Investment & Securities upgraded its investment opinion on Kakao Games to "Buy" and set a target price of 25,000 KRW.

Lee Seung-hoon, a researcher at IBK Investment & Securities, said, "Kakao Games has invested in Lionheart (55%) and XL Games (53%), which have trillion-won corporate value potential, as well as more than 10 other game developers. Considering the value of these developers, we judge it to be in an undervalued range." He also said, "Next year, three major new titles?Chrono Odyssey, ArcheAge 2, and Project Q?will be released."

He added, "Since the management change, the company has promised to reorganize business units that do not create synergy with games," and said, "The metaverse and blockchain organizations have been downsized, and non-gaming subsidiaries are also subject to restructuring. By eliminating loss-making factors, it is expected to maximize the leverage effect from new releases starting next year."