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On Wednesday, JPMorgan analyst Stanley Yang upgraded shares of NCsoft Corp (KS:036570:KS), a South Korean video game company, from Underweight to Neutral. The price target remains set at KRW130,000.00. Yang’s decision follows a recent meeting with the company’s management, where they presented updates on the development of new games, including Aion 2’s expected release in late Q4 2025.
Yang noted an improved outlook on NCsoft’s operations, citing several factors that contributed to the upgrade. Firstly, there was greater clarity on the launch plan for Aion 2, with the in-game trailer quality exceeding expectations. Additionally, the company’s new game pipeline appears more diverse than previously thought. NCsoft also seems to be adopting a more aggressive approach to monetizing its legacy intellectual properties, such as Lineage, in international markets.
The analyst also pointed out potential for more efficient labor cost management within the company. Despite these positive developments, NCsoft’s stock has experienced a 26% decline year-to-date, which contrasts with the KOSPI’s 4% gain. This decline has been attributed to the structural revenue decline of legacy intellectual properties and uncertainties surrounding the execution of new game launches.
Yang emphasized that while the current share price of W135,800 is closer to JPMorgan’s December 2025 price target, reflecting many of the market’s concerns, he does not recommend aggressively purchasing the stock at this stage. The firm advises investors to wait for NCsoft to provide more detailed public demonstrations of game play before considering investment. The current price-to-earnings ratio for 2026 based on Street consensus is 12 times, which the analyst believes largely accounts for investor apprehensions.
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