Nomura upgrades Pearl Abyss stock to Buy on Crimson Desert potential

Published 14/08/2025, 10:04
Nomura upgrades Pearl Abyss stock to Buy on Crimson Desert potential

Investing.com - Nomura/Instinet upgraded Pearl Abyss Corp. (NYSE:BRFS) from Neutral to Buy on Thursday, while lowering its price target to KRW35,000.00 from KRW37,000.00.

The upgrade comes despite Pearl Abyss delaying the launch of its anticipated game Crimson Desert to the first quarter of 2026. According to Nomura, the delay is operational rather than developmental, involving voice-over localization and console certification processes.

Pearl Abyss has confirmed that while the launch date has been finalized internally, it remains undisclosed to investors. The company plans to hold an open-world demo for consumers within 2025, with the official launch date to be announced before December 2025.

Nomura now forecasts a net loss for Pearl Abyss in 2025 and has reduced its 2026 earnings per share estimates to account for marketing costs shifting into the first quarter of 2026. The new price target is based on 15 times 2026 forecast earnings, compared to 23 times previously.

The stock currently trades at 13 times 2026 forecast earnings, with Nomura applying a 20% discount to peer average trading multiples due to lower visibility in the game launch schedule.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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