Shinhan Investment Securities explained on the 17th that it is inevitable for Kakao Pay's stock price volatility to increase, reflecting expectations regarding stablecoins. It lowered its investment opinion from 'Buy' to 'Hold.' No target stock price was provided. Kakao Pay's closing price the previous day was 67,300 won.
Shinhan Investment Securities expects that Kakao Pay's consolidated revenue for the second quarter of this year will increase by 19% year-over-year to 220.7 billion won. Operating profit is estimated to turn to a profit of 7.5 billion won.
Im Hee-yeon, a researcher at Shinhan Investment Securities, said, "The second quarter results are solid, but there is a significant gap between the stock price and fundamentals," adding, "It is inevitable that stock price volatility will increase, reflecting expectations regarding stablecoins."
He also noted that it is currently in an 'overshooting' phase.
Researcher Im stated, "Even if expectations related to the stablecoin business and valuation premiums due to the turnaround in securities are factored in, the appropriate corporate value is estimated at 6.3 trillion won, and the appropriate stock price is 48,171 won," adding, "Considering the rapid growth of stablecoin payments, the appropriate corporate value is estimated at 7.6 trillion won and the appropriate stock price at 57,334 won."
Kakao Pay's previous closing price was 67,300 won, resulting in a market capitalization of 9.2 trillion won.
Researcher Im explained, "Current excessive expectations are interpreted as being reflected in the stock price," noting, "The legislation regarding stablecoins is in the initial stages, and with no concrete regulatory guidelines available, it is difficult to determine whether the current market expectations can be justified."
He added, "In the future, the target stock price and investment opinions may be adjusted depending on the policy direction and the progress of the stablecoin business."