Brokerages lower target price for NHN
Shares in NHN, which operates Naver, the most-frequented portal site in Korea, went down to an 11-month low early in the day, although it finished higher.The largest firm on the secondary Kosdaq began trading at 159,900 won ($153.30), dipping below 160,000 won for the first time since last August.
It fell further to 158,800 won in the morning session before rising again. It closed at 166,000 won, up 2,500 won, or 1.5 percent, from the previous day’s close. On the day, the Kosdaq extended its losing streak to the seventh day, falling 4.13 points, or 0.8 percent.
Analysts say the company’s recent struggles are not caused so much by the result of lowered growth potential as by the turmoil in the stock market.
Recently, three brokerages ? Mirae Asset Securities, Goodmorning Shinhan Securities and Meritz Securities ? lowered their target prices for NHN by between 34,000 won and 72,000 won, while retaining “buy” ratings.
Goodmorning Shinhan lowered it from 344,000 won to 272,000 won.
“We lowered NHN’s fair value by 20.9 percent in line with the lowered P/EBITDAPS multiple,” said Choi Kyoung-jin, an analyst at Goodmorning Shinhan in a report. The P/EBITDAPS multiple gauges the value of the market.
Choi, however, said the brokerage still sees NHN as a sector top-pick based on its robust earnings outlook.
By Moon Gwang-lip Staff Reporter [joe@joongang.co.kr]
with the Korea JoongAng Daily
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