Street Calls of the Week
Investing.com - Jefferies downgraded NEXON Co., Ltd (TYO:3659) from Buy to Hold and slightly lowered its price target to JPY3,172.00 from JPY3,210.00.
The downgrade comes as Nexon shares have surged approximately 86% from their 52-week low, bringing the stock price near its all-time high of around JPY3,400.
Despite Nexon’s strong intellectual property portfolio, Jefferies noted that the company’s earnings growth remains muted, raising concerns about valuation.
The investment firm considers Nexon’s current valuation stretched at approximately 28 times CY25 price-to-earnings ratio, with limited visibility on operating profit growth.
Jefferies’ new price target of JPY3,172 aligns with consensus estimates, and the firm indicated it would await clearer catalysts before reconsidering its stance on the stock.
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