HSBC downgrades Webtoon to Hold on ‘unclear guidance’

As previously reported, HSBC downgraded Webtoon (WBTN) to Hold from Buy with a price target of $11.50, down from $23. The company’s Q4 report shows “intensifying pressure” from alternative content formats such as short-form videos and a “struggling” advertising business, the analyst tells investors in a research note. HSBC is “discouraged by management’s unclear guidance” and timeline of Disney partnership progress. The stock in midday trading is down 6% to $10.83.