Gold prices dip as hawkish Fed minutes weigh ahead of Jackson Hole
On Monday, Jefferies updated its outlook on NEXON Co., Ltd (3659:JP) (OTC: NEXOF), a Tokyo-based video game publisher. The firm increased its price target for NEXON shares to JPY4,870 from JPY4,340, while reaffirming its Buy rating on the stock.
The revision comes as Jefferies recognizes the strength of NEXON's diverse game portfolio, which spans across mobile and PC platforms. The firm cited successful intellectual properties (IPs) like Dungeon Fighter (DNF), MapleStory (MS), FIFA ONLINE (FC), and upcoming titles like Arc Raiders as key drivers behind the company's robust position in the gaming industry.
The analyst from Jefferies highlighted NEXON's long-term partnerships with major industry players, including Tencent (HK:0700), Electronic Arts (NASDAQ:EA), and Embark Studios, as strategic advantages that could sustain the company's industry-leading earnings growth. According to the firm, NEXON is projected to experience a compound annual growth rate (CAGR) of approximately 22% in earnings from calendar year 2021 to 2024.
In light of recent results and market trends, Jefferies has raised its operating profit estimates for NEXON by roughly 20-30% for the calendar years 2024, 2025, and 2026. The new forecasts are set at approximately ¥169 billion, ¥204 billion, and ¥239 billion, respectively. This adjustment implies a CAGR of around 22% in operating profit from 2023 to 2026, with the stock trading at 15 times price-to-earnings ratio (PER).
NEXON has been designated as a top pick by Jefferies, reflecting the firm's confidence in the stock's potential for strong performance in the coming years. The updated price target and sustained Buy rating suggest that Jefferies expects NEXON to continue its trajectory of growth and profitability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.