[EQUITIES] ‘Naver shares to slow down but maintain growth’

[THE INVESTOR] Hanwha Investment & Securities on Oct. 28 forecast Naver’s rising share price will experience a brief slowdown, but will maintain strong growth on the back of steady earnings in the fourth quarter.
The local brokerage predicted Naver’s fourth-quarter operating profit will jump 52 percent on-year to 309 billion won (US$269.69 million), while revenue will rise 22 percent to 1.08 trillion won. 

“With the launch of new shopping ads next month, sales of mobile advertising looks favorable,” Kim So-hye, researcher from Hanwha said. “It’s similar to how Facebook launched Marketplace to strengthen its platform by combining commerce.”

“Naver’s market dominance will further strengthen,” Kim said. “In the short term, Naver shares will likely slow down after such a fast-growth. But with its strong business and growth strategy that meets the global trend, the share price will have a steady rise.”

With the forecast, Hanwha maintained its “buy” recommendation and a target price of 980,000 won.

By Ahn Sung-mi (sahn@heraldcorp.com)