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Investing.com - NCsoft Corp (KS:036570) received an upgrade from JPMorgan on Wednesday, with its stock rating raised from Underweight to Neutral and its price target increased to KRW230,000 from KRW160,000.
The upgrade comes despite NCsoft reporting negative operating profit in the third quarter, which aligned with market expectations and confirmed a structural revenue decline in the company’s Lineage IP mobile games.
JPMorgan cited two positive investment factors in its decision: management’s plans to unveil an in-game trailer for a new IP MMORPG at G-Star (estimated to be Horizon IP with a 2Q27 launch), and the implementation of a PC payment option for mobile games that could save approximately KRW60 billion in annual commission costs.
The research firm raised its operating profit forecast by 28% for 2026 and 26% for 2027, resulting in what it describes as a less demanding valuation at 14x/16x 2026/27 P/E ratios.
JPMorgan noted that gamer feedback on the new IP at G-Star and the upcoming Aion 2 launch on November 19 remain key share price factors, while concerns about structural decline in Lineage IP revenue, limited visibility on new game execution, and a potential declining revenue cycle after 2026 prevented a more bullish Overweight rating.
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