[EQUITIES] ‘Netmarble Games to rebound on new hit’
[THE INVESTOR] Netmarble Games stocks dipped after its IPO but will rebound on the success of its new release, said KTB Investment and Securities on May 29, suggesting a “buy” recommendation and 170,000 won (US$151.76) target price.
Concerns over the “restricted” rating of “Lineage 2: Revolution,” cannibalization by “Lineage M” and decline in revenue led to a fall in stock price, said analyst Lee Min-a.
The rating however will not have a significant effect on revenue, and could be revised after an update in the game’s system, according to the analyst. Its revenue is stabilizing and is likely to surge when the firm rolls out its new games in Japan in the second quarter and in China in the fourth quarter, said Lee.
It is launching a series of mobile games through the year and will expand its user bas.Its revenue will steadily grow, added the analyst.
By Hwang You-mee (email@example.com)