J.P. Morgan analyst Doug Anmuth has maintained their neutral stance on WBTN stock, giving a Hold rating today.
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Doug Anmuth’s rating is based on a combination of factors that reflect both positive developments and ongoing challenges for WEBTOON Entertainment Inc. The company’s FXN revenue growth exceeded expectations in the first quarter and the guidance for the second quarter also showed promise. However, the adjusted EBITDA results were mixed, with the first quarter slightly ahead of expectations but the second quarter guidance falling short of consensus estimates. This indicates that while there is some stability in the operating environment, there are still areas that require improvement.
Moreover, WEBTOON’s performance in Japan is strong, with positive revenue growth in key areas such as Paid Content and Advertising, and the company is beginning to expand Japanese content to other markets. Despite these positive signals, Anmuth believes that more substantial improvements in top-line trends and overall execution are necessary to build confidence in the company’s long-term growth and margin potential. As such, the Hold rating reflects a cautious optimism, acknowledging the company’s potential while recognizing the need for further progress.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $10.00 price target.