On Thursday, Jefferies increased its price target on NEXON Co., Ltd (3659:JP) (OTC: NEXOF) to JPY4,340, up from the previous JPY4,230. The firm has sustained its Buy rating on the stock. The revision follows a discussion with Nexon's management, which bolstered Jefferies' outlook on the company's business trajectory.
The analyst cited several positive developments, including the monetization of Dungeon&Fighter mobile (DNFm), the recovery of MapleStory, ongoing success of FIFA Online (FC Online), and a rebound in Dungeon&Fighter PC (DNF PC). Despite initial concerns over potential cannibalization of DNF PC by the new mobile version, the analyst now sees the DNFm launch as a possible driver for both upside and downside.
Jefferies has adjusted its 12-month revenue estimate for DNFm upward, from $850 million to $1 billion. This adjustment contributes to the rationale behind the raised price target. The analyst highlighted Nexon's valuation, noting that it is inexpensive at 16 times the calendar year 2025 estimated earnings per share (EPS) of JPY 181, as projected by Jefferies.
NEXON Co., Ltd, known for its prominent role in the gaming industry, particularly in online games, has been the subject of keen interest from investors. The company's stock performance is closely watched, with updates such as this price target change providing insight into market expectations.
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