Analyst Doug Anmuth from J.P. Morgan maintained a Hold rating on WEBTOON Entertainment Inc (WBTN – Research Report) and decreased the price target to $10.00 from $12.00.
Doug Anmuth has given his Hold rating due to a combination of factors impacting WEBTOON Entertainment Inc. The company’s recent financial results showed that while the fourth quarter was in line with expectations, the guidance for the first quarter was weaker than anticipated. This was influenced by several challenges, including political instability in Korea and the ban of Wattpad in Turkey, as well as a strategic shift towards app users over web users.
Despite these challenges, there are positive signs such as strong revenue growth in Japan and an increase in webcomic app monthly active users. However, the company’s initial quarters as a public entity have been difficult, and there is a need for improved execution to boost confidence in its long-term growth and margin potential. The price target has been adjusted to $10, reflecting the need for solid execution to achieve the expected growth and margin improvements.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $13.00 price target.