Webtoon stock price target raised to $15 from $11 at Goldman Sachs

Published 13/08/2025, 11:04
Webtoon stock price target raised to $15 from $11 at Goldman Sachs

Investing.com - Goldman Sachs raised its price target on Webtoon Entertainment Inc (NASDAQ:WBTN) to $15.00 from $11.00 while maintaining a Buy rating following the company’s Q2 2025 earnings report. According to InvestingPro analysis, the company appears undervalued at its current market capitalization of $1.22 billion, with the stock trading at just 0.83 times book value.

The digital comics platform reported revenue and adjusted EBITDA that exceeded both prior guidance and market expectations, driven by strong performance in its English language web comic app. While the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 2.63, InvestingPro data reveals relatively weak gross profit margins at 24.37%.

Webtoon announced a content partnership with Disney (NYSE:DIS), following its earlier partnership with Dark Horse Comics, demonstrating increased interest from major content owners seeking to engage younger audiences through Webtoon’s platform.

The company continues to focus on building its creator ecosystem and scaling original content offerings across key markets, while maintaining approximately 10% constant currency revenue growth at the mid-point of guidance.

Goldman Sachs noted that near-term investor focus will likely remain on user growth linearity across key geographies and content monetization dynamics in the second half of 2025.

In other recent news, Webtoon Entertainment reported its second-quarter 2025 earnings, revealing a revenue of $348.27 million. This figure exceeded the forecasted $341.2 million, resulting in a positive revenue surprise of 2.07%. The company’s performance was well-received by investors, reflecting confidence in its financial health. Analysts had anticipated a different outcome, but the actual results surpassed expectations. This development highlights Webtoon Entertainment’s ability to outperform projections, which may influence future analyst assessments. The earnings report is a significant indicator of the company’s current financial status and market position. Investors are likely to keep a close eye on future earnings releases to gauge ongoing performance.

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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