Morgan Stanley analyst Matthew Cost maintained a Hold rating on WEBTOON Entertainment Inc (WBTN – Research Report) today and set a price target of $13.00.
Matthew Cost has given his Hold rating due to a combination of factors impacting WEBTOON Entertainment Inc. The company reported mixed results for the fourth quarter, with revenue slightly exceeding expectations but EBITDA falling short. While there was notable growth in advertising and paid content, this was offset by a decline in IP adaptations, particularly in Korea, due to pipeline delays.
Additionally, the company’s guidance for the first quarter was weaker than anticipated, with lower revenue growth expectations and significant underperformance in EBITDA projections. This was attributed to continued delays in the Korean IP adaptation pipeline and increased investment in technology improvements planned for the second half of 2025. Despite these challenges, there are potential catalysts in the form of new product initiatives, which could enhance user engagement and monetization if successfully implemented.
Cost covers the Technology sector, focusing on stocks such as AppLovin, Trade Desk, and Unity Software. According to TipRanks, Cost has an average return of -3.6% and a 50.00% success rate on recommended stocks.
In another report released on February 11, J.P. Morgan also maintained a Hold rating on the stock with a $12.00 price target.