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A035420: Generative AI Content Alliance Will Support Stronger Long-Term Earnings Power

Digital Economy And AI Will Transform Global Commerce

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A035420
AnalystHighTarget
Not Invested
Published 29 Jun 2025

Update shared on 14 Dec 2025

Fair value Increased 7.89%
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AnalystHighTarget's Fair Value
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1Y
10.3%
7D
-5.1%

Analysts have raised their fair value estimate for NAVER from ₩380,000 to ₩410,000 per share, citing stronger expected revenue growth that more than offsets a modestly higher discount rate and slightly lower profit margin assumptions, as well as support from a higher future P/E multiple.

What's in the News

  • NAVER forms a capital and business alliance with note inc., investing JPY 2 billion to jointly build a global ecosystem for creation and distribution in the generative AI era (Key Developments)
  • The partnership targets cross-distribution of content and IP across NAVER and note inc. platforms, supporting global expansion for both companies (Key Developments)
  • Both firms plan to develop new mechanisms to deepen creator fan relationships and expand the user generated content ecosystem worldwide (Key Developments)

Valuation Changes

  • The fair value estimate has risen moderately from ₩380,000 to ₩410,000 per share, reflecting stronger expected fundamentals.
  • The discount rate has increased slightly from 8.40% to about 8.59%, indicating a modestly higher required return.
  • The revenue growth assumption has risen meaningfully from about 12.32% to approximately 15.17%, signaling improved top line expectations.
  • The net profit margin assumption has edged down from roughly 18.96% to about 17.72%, incorporating slightly more conservative profitability.
  • The future P/E multiple has increased from around 22.8x to roughly 25.0x, implying a higher valuation being placed on NAVER's earnings.

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Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.