NCsoft stock rating upgraded by Nomura on Aion 2 prospects

Published 13/08/2025, 09:08
NCsoft stock rating upgraded by Nomura on Aion 2 prospects

Investing.com - Nomura/Instinet upgraded NCsoft Corp (KS:036570) from Reduce to Neutral and raised its price target to KRW220,000 from KRW120,000, citing positive market reception to the company’s upcoming Aion 2 game.

The upgrade follows NCsoft’s 64% stock price increase since April, driven by enthusiasm after a late-June closed-door Focus Group Test in Korea and management’s 2026 revenue guidance of KRW2.0-2.5 trillion, which implies 30-60% year-over-year growth.

Nomura noted that while early feedback on Aion 2 has been mixed, testers were impressed by the game’s large scale, polished Unreal Engine 5 visuals, and flexible combat systems, contributing to optimism about its commercial potential.

The research firm believes upside from Aion 2 is now largely reflected in NCsoft’s share price and will monitor how the game’s monetization design could impact long-term sentiment among its franchise and players.

Nomura’s new price target is based on 20x 2026 forecast earnings per share, a multiple broadly in line with Korean and Chinese peers, with the firm shifting its valuation base forward to 2026 forecasted EPS.

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