[Click e-Stock] "Shift Up Lacks Short-Term Momentum... IP Expansion Remains Promising"

Target Price Lowered from 95,000 Won to 86,000 Won

On June 16, Hana Securities lowered its target price for Shift Up from 95,000 won to 86,000 won, citing a lack of short-term momentum from anticipated titles. However, the firm maintained its 'Buy' investment rating, stating that from a long-term perspective, it sees this as an opportunity to increase holdings with a market capitalization target of 5 trillion won.

Shift Up, which was listed in July last year, has exhausted all of its short-term share price momentum following the launch of "Goddess of Victory: Nikke" in China last month and the release of "Stellar Blade" for PC on June 11. The next title, "Project Spirit," is not expected to be released until 2027?2028, making a decline in interest in the second half of the year inevitable.

Lee Junho, a researcher at Hana Securities, stated, "Regardless of momentum, it is necessary to reassess Shift Up's current position," adding, "Shift Up has scalability through global IP power and a high probability of success for its upcoming pipeline." He explained that "Goddess of Victory: Nikke" has established itself by ranking seventh in revenue on the Chinese App Store, and that Shift Up's merchandise sales are also recognized as net sales in other revenue, estimated to exceed 25 billion won in total sales for the first quarter.

Lee pointed out, "With the success of 'Stellar Blade' on PC, the long-term growth curve through serialization has become more apparent, and the follow-up title 'Project Spirit' is expected to generate higher revenue than 'Goddess of Victory: Nikke,' considering CEO Kim Hyungtae's track record."

Shift Up's operating revenue for 2025 is projected to be 290.6 billion won (up 29.7% year-on-year), with operating profit estimated at 211.2 billion won (up 38.3%). Lee estimates that this year's global revenue for "Goddess of Victory: Nikke" will be 146.3 billion won (down 3.4%), with revenue from China at 51.9 billion won, indicating a gradual stabilization at a lower level. "Stellar Blade" is expected to reach cumulative sales of 4.2 million units within 20 months of its release.