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Investing.com - JPMorgan has upgraded Netmarble (KS:251270) from Underweight to Neutral and raised its price target to KRW60,000 from KRW40,000, citing better-than-expected operational performance.
The South Korean gaming company’s third-quarter operating profit exceeded Street consensus by 9%, driven by stronger-than-anticipated performance from Vampir in the domestic market and Seven Knights: ReBirth globally, along with effective labor and commission cost control.
JPMorgan acknowledged it had underestimated Netmarble’s capabilities in three key areas: new game execution (particularly in the domestic MMORPG genre), cost optimization strategy, and multiple game launch capability, which have contributed to upward earnings revisions for 2025.
The investment bank has increased its operating profit forecasts for Netmarble by 35% to KRW425 billion for 2026 and by 32% to KRW387 billion for 2027, reflecting the company’s improved game execution and margin profile.
Despite the upgrade, JPMorgan remains hesitant about an Overweight rating due to concerns regarding Netmarble’s lack of big game intellectual property, short product life cycle issues, and limitations in high-quality R&D and brand awareness.
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