Goldman Sachs reinstates Kakao stock with Buy rating on AI potential

Published 17/07/2025, 06:52
Goldman Sachs reinstates Kakao stock with Buy rating on AI potential

Investing.com - Goldman Sachs has reinstated coverage on Kakao Corp . (KS:035720) with a Buy rating and a price target of KRW85,000, implying 52% upside potential from current levels.

The investment bank cites KakaoTalk messenger’s upcoming transformative upgrade through its recently announced OpenAI partnership and multi-agent AI integration, scheduled for November launch, as a key driver for the positive outlook.

Goldman Sachs believes Kakao is well-positioned due to three factors: a strong trend of AI service adoption in Korea, near-100% population coverage via KakaoTalk, and access to OpenAI’s large language model infrastructure.

The firm expects Kakao to accelerate AI adoption in Korea, potentially redefining mobile search and user interaction patterns, similar to how it transformed taxi hailing, money transfer, mobile banking, and virtual gifting in the country.

According to Goldman Sachs, the upcoming AI integration may allow users to delegate tasks to AI agents within KakaoTalk, eliminating the need to search for, open, and navigate separate apps.

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