Meritz Securities raised its investment opinion on Kakao Games from 'Hold' to 'Buy' on the 17th, saying it has become a global game company through its hit Odin. The target price rose more than 45% to KRW 130,000 from 89,000 One.
Meritz Securities analyzed that Odin's recognition of connection through the inclusion of Odin's developer Lion Heart as a subsidiary is expected to lead to a significant performance growth.
Odin's sales in 2022 are expected to rise 15% year-on-year to 7,743 billion won. It is also positive that the business area is expanding to the NFT (unalterable token) platform.
"Kakao Games is aiming to expand our business area from games to sports, Metaverse, and NFT," Meritz Securities said. "Kakao Games is developing an NFT exchange at our subsidiary Friends Games, and we are planning to sell digital assets such as golf tea-time reservation tickets, game items and idol fan art.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
