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Strategic Acquisition Potential and Attractive Valuation Drive Buy Rating for Nexon Co.

Strategic Acquisition Potential and Attractive Valuation Drive Buy Rating for Nexon Co.

Jefferies analyst Atul Goyal maintained a Buy rating on NEXON Co (NEXOFResearch Report) today and set a price target of Yen3,210.00.

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Atul Goyal has given his Buy rating due to a combination of factors that enhance Nexon Co.’s strategic and financial position. A significant development is the reported interest from Tencent to acquire Nexon, which aligns well with Tencent’s existing role as Nexon’s publishing partner in China. This potential acquisition is seen as a strategic fit, especially considering Nexon’s strong intellectual property portfolio and its solid net cash position.
Furthermore, Nexon’s current valuation is considered attractive, making it a compelling investment opportunity. The limited exit options for the founding family suggest that Tencent might be the most viable buyer, increasing the likelihood of the deal. As a result, Goyal has raised the price target to ¥3,200, reinforcing the Buy recommendation.

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