Morgan Stanley analyst Matthew Cost has maintained their neutral stance on WBTN stock, giving a Hold rating today.
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Matthew Cost has given his Hold rating due to a combination of factors surrounding WEBTOON Entertainment Inc’s recent developments. The company has announced a partnership with Disney to build and operate a new digital comics platform, which includes Disney acquiring a 2% stake in WEBTOON. However, the financial terms of this partnership have not been disclosed, and there is no expectation of a significant near-term financial impact.
While the partnership presents a strategic opportunity for WEBTOON to expand its English-speaking audience, which could potentially increase its revenue, the immediate financial benefits remain uncertain. The company may need to invest in building the new platform, and the timeline for realizing these benefits is not clearly defined. As a result, the Hold rating reflects a cautious approach, acknowledging the potential long-term benefits while recognizing the current uncertainties.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $22.00 price target.