Deutsche Numis analyst Benjamin Black CFA has maintained their bullish stance on WBTN stock, giving a Buy rating today.
Benjamin Black CFA has given his Buy rating due to a combination of factors related to WEBTOON Entertainment Inc.’s growth prospects and valuation metrics. He identifies significant growth opportunities for the company in markets outside Korea, particularly in North America (NA) and Japan. Black projects a substantial increase in gross profit for these regions and expects the high-margin advertising business to be a key growth driver. Furthermore, the company’s ability to extend its intellectual property is seen as a means to further increase user engagement and revenue streams.
The analyst’s optimistic outlook is also supported by potential upside scenarios in both the North American advertising and paid content sectors, suggesting considerable revenue and EBITDA growth beyond current forecasts. Additionally, Black believes the stock’s current valuation does not fully account for the growth potential in these regions, suggesting that investors are essentially getting the opportunity for growth in North America at a discounted rate. His target price of $25 reflects a 30% discount to the peer group average, further underscoring the attractiveness of the stock at its present level.
In another report released today, Evercore ISI also initiated coverage with a Buy rating on the stock with a $30.00 price target.
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WEBTOON Entertainment Inc. (WBTN) Company Description:
WEBTOON is a global storytelling platform where a vibrant community of creators and users discover, create and share new content. We have pioneered a cultural movement by revolutionizing the storytelling format and democratizing content creation and publication. WEBTOON empowers creators by enabling them to participate economically in their own creation, and users, by offering an endless library of content. Our community connects 24 million creators with approximately 170 million monthly active users in over 150 countries around the world.
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