Corporate Logo(source: m-logoproject.naver.com)
On the 18th, SK Securities raised its target price for NAVER(035420) from 270,000 won to 300,000 won while maintaining a "BUY" rating.
Nam Hyo-ji, an analyst at SK Securities, stated, "NAVER has made various advancements in AI, such as the development of Hyperclova X and the provision of B2B services. Starting this year, the results of its AI efforts will become evident in the B2C segment."
The first key area highlighted is the application of AI technology in NAVER's commerce business. Analyst Nam explained, "On the 12th, NAVER launched 'NAVER Plus Store,' a personalized shopping service based on AI, as a separate app. While the existing NAVER Shopping led users to purchases through search, Plus Store aims to evolve into an exploration/discovery-based shopping model."
She further noted, "With the launch of Plus Store, the commission structure will also be revised. Previously, a 1.81% commission fee was charged when users were directed to stores via search, but from the 6th, a sales commission will be applied to transaction amounts, regardless of how users enter the store. The expected revenue increase from this change is projected to be around 160 billion won in the second half of the year."
Nam also mentioned, "Considering the impact of enhanced delivery capabilities and category expansion, the growth rate of on-platform transaction volumes will accelerate compared to last year. Our forecast is a 10% growth this year, 12.4% growth next year, and 16.4% growth in the year after that. As a result of the Plus Store launch, we have revised upward our projections for NAVER's commerce revenue."
She concluded, "Since the commission rate is still lower than other e-commerce platforms, the possibility of seller separation is minimal. Although concerns over low transaction growth last year led to a sluggish stock performance, this year, we expect transaction growth to improve steadily, resulting in a consistent upward trend for NAVER’s stock."
*[KOSPI]NAVER(035420) is Korea's leading portal service provider, with a total of 98 affiliated subsidiaries including NAVER Financial, NAVER Webtoon, Snow, and NAVER Jet. It is an ICT company that engages in businesses such as content, advertising, commerce, fintech, and cloud services. The market capitalization is 33 trillion 430.2 billion won(as of March 17, 2025, closing price).
Corporate Logo(source: m-logoproject.naver.com)
On the 18th, SK Securities raised its target price for NAVER(035420) from 270,000 won to 300,000 won while maintaining a "BUY" rating.
Nam Hyo-ji, an analyst at SK Securities, stated, "NAVER has made various advancements in AI, such as the development of Hyperclova X and the provision of B2B services. Starting this year, the results of its AI efforts will become evident in the B2C segment."
The first key area highlighted is the application of AI technology in NAVER's commerce business. Analyst Nam explained, "On the 12th, NAVER launched 'NAVER Plus Store,' a personalized shopping service based on AI, as a separate app. While the existing NAVER Shopping led users to purchases through search, Plus Store aims to evolve into an exploration/discovery-based shopping model."
She further noted, "With the launch of Plus Store, the commission structure will also be revised. Previously, a 1.81% commission fee was charged when users were directed to stores via search, but from the 6th, a sales commission will be applied to transaction amounts, regardless of how users enter the store. The expected revenue increase from this change is projected to be around 160 billion won in the second half of the year."
Nam also mentioned, "Considering the impact of enhanced delivery capabilities and category expansion, the growth rate of on-platform transaction volumes will accelerate compared to last year. Our forecast is a 10% growth this year, 12.4% growth next year, and 16.4% growth in the year after that. As a result of the Plus Store launch, we have revised upward our projections for NAVER's commerce revenue."
She concluded, "Since the commission rate is still lower than other e-commerce platforms, the possibility of seller separation is minimal. Although concerns over low transaction growth last year led to a sluggish stock performance, this year, we expect transaction growth to improve steadily, resulting in a consistent upward trend for NAVER’s stock."
*[KOSPI]NAVER(035420) is Korea's leading portal service provider, with a total of 98 affiliated subsidiaries including NAVER Financial, NAVER Webtoon, Snow, and NAVER Jet. It is an ICT company that engages in businesses such as content, advertising, commerce, fintech, and cloud services. The market capitalization is 33 trillion 430.2 billion won(as of March 17, 2025, closing price).