Webtoon initiated with a Buy at Citi

Citi initiated coverage of Webtoon (WBTN) with a Buy rating and $11 price target The company has lost over half its market value since its June 2024 listing, due to short-term operational softness and unmet early expectations, the analyst tells investors in a research note. However, Citi says that with consensus estimates now reset and execution underway, the stock is undervalued. Webtoon trades well below its China literature peers, despite operating a comparable platform across paid content and intellectual property adaptations, contends the firm. It believes the stock offers an attractive long-term growth story with a favorable risk/reward skew.