0726 GMT - Kakao is unlikely to get a meaningful valuation boost from its projected advertising-revenue increase later this year, HSBC analyst Junhyun Kim writes in a note. The ads growth for the South Korean mobile internet company may come in at 9% on year in 2H, following an estimated 4% increase in 1H, Kim says. Though the company's introduction of feed-type ads and video ads may spur stronger growth, he notes, it is not enough to lead a significant enterprise value upgrade due to a lack of concrete monetization strategies. HSBC downgrades its rating on the stock to hold from buy and cuts its target price by 16% to KRW41,000. Shares slip 0.1% to KRW36,950. (kwanwoo.jun@wsj.com)
(END) Dow Jones Newswires
May 09, 2025 03:26 ET (07:26 GMT)
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