[Click e-Stock] "Kakao Games, Top Pick in Gaming Sector... Target Price Raised"

Mirae Asset Securities maintained Kakao Games as its top pick in the gaming sector on Nov. 4 and slightly raised its target price to KRW 16,000 from KRW 15,000.

According to Mirae Asset Securities, the target price increase reflects an adjustment to its 2027 earnings outlook in light of the success of the new title Dokkaebi's World. The brokerage also maintained its top-pick rating for the gaming sector and its “Buy” recommendation. “A turnaround is expected from the first quarter of 2027, and new-title and earnings momentum from the launch of Odin Q is expected to remain strong through the first quarter,” said analyst Lim Heeseok of Mirae Asset Securities. Kakao Games shares closed at KRW 11,970 that day.

Released in October, Dokkaebi's World has continued to perform better than expected, holding the top spot in Google Play Store revenue rankings. Lim assumed average daily revenue of KRW 900 million for the game in the fourth quarter, saying, “Its broad monetization structure, which does not depend on a small number of high-spending users, and its player-centered in-game economy are factors that increase its potential for long-term success.”

The company is also targeting a global launch on mobile and Steam in the second quarter of next year. “Its low barrier to entry, pixel-art graphics, and player-centered economy are expected to make it competitive in global markets,” Lim said. “We view positively its potential for further growth through sustained success in Korea and a global launch.”

He also noted, “It is positive that the release schedule for major new titles was not delayed in the latest earnings announcement,” adding that “concerns over a delay to the launch of Odin Q, the biggest source of uncertainty, have eased.” Odin Q is aimed at hardcore MMORPG players and is scheduled to launch simultaneously in Korea, Taiwan, and Japan.

Kakao Games previously reported third-quarter revenue of KRW 69.1 billion and an operating loss of KRW 26.3 billion.

This content was produced with the assistance of AI translation services.