Analyst Matthew Cost from Morgan Stanley maintained a Hold rating on WEBTOON Entertainment Inc and increased the price target to $11.00 from $10.00.
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Matthew Cost has given his Hold rating due to a combination of factors influencing WEBTOON Entertainment Inc’s performance. The company reported solid second-quarter results, with revenue and EBITDA surpassing expectations. However, despite growth in paid content, advertising, and IP adaptations, there was a notable decline in total monthly active users, particularly in Korea and the Rest of the World, which offset gains in Japan.
Additionally, while the newly announced partnership with Disney presents a promising opportunity for future growth, its immediate impact on revenue is not yet clear. The partnership could potentially attract a broader audience, especially in English-speaking markets, but it remains uncertain whether these new users will engage with platform-native content or primarily consume branded content. These uncertainties contribute to the Hold rating, as the long-term benefits of the partnership and overall user growth remain to be seen.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $9.00 price target.