Kakao Analysts Cut Price Targets to 57,000-62,000 Won on July 7 Amid AI Uncertainty

According to DB Securities and Hana Financial Investment, on July 7, Kakao's stock fell to 35,400 won as analysts cut target prices to 57,000 and 62,000 won respectively. Both firms maintained 'buy' ratings despite the downward revisions. Q2 earnings are expected to meet market consensus, with DB Securities projecting 2.01 trillion won in revenue and 218.4 billion won in operating profit. However, uncertainty around Kakao's AI business is weighing on the stock price. DB Securities noted that ChatGPT for Kakao has accumulated approximately 11 million users but traffic indicators and external partnerships remain underdeveloped, highlighting the need for near-term breakthroughs through services like Kana in Talk.
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