Jefferies analyst Atul Goyal downgraded the rating on NEXON Co to a Hold today, setting a price target of Yen3,172.00.
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Atul Goyal has given his Hold rating due to a combination of factors influencing NEXON Co.’s current market position. The company’s stock has experienced a significant increase of approximately 86% from its 52-week low, reaching near all-time highs around ¥3,400. Despite possessing strong intellectual property, the growth in earnings has been relatively subdued.
Furthermore, the valuation appears to be on the higher side, with a price-to-earnings ratio of about 28 times the estimated earnings for the calendar year 2025, and there is limited clarity on operating profit growth. Consequently, the price target has been slightly reduced to ¥3,172, aligning with the consensus. The recommendation reflects a cautious stance as the analyst awaits more definitive indicators of financial performance.