[Edaily Reporter Park Jung-Soo ] On the 7th, DB Securities projected that generative AI advertising and the AI Factory business would become new growth drivers for NAVER(035420)in the second half of the year. The firm maintained its “Buy” rating and target price of 300,000 won. The closing price on the 6th was 196,600 won.
Shin Eun-jeong, an analyst at DB Securities, stated, “Second-quarter earnings are expected to meet market expectations,” adding, “AI monetization and the concrete implementation of the AI Factory in the second half will be key variables affecting the stock price.”
DB Securities estimated NAVER’s second-quarter revenue at 3.3889 trillion won, a 16.3% increase year-over-year, and operating profit at 576.1 billion won, up 10.5%. These figures are in line with market consensus. The firm projected that strong performance in performance-based and commerce advertising would drive advertising revenue growth, while an increase in shopping transaction volume in June, Samsung’s home appliance promotion, and a rise in membership subscribers due to the expansion of ‘Chijichik’ during the World Cup would also have a positive impact on earnings.
However, operating expenses are expected to rise 17.5% year-over-year due to increased costs for World Cup broadcasting rights and e-commerce marketing, which is projected to cause a slight slowdown in profitability.
For the second half of the year, the firm anticipates that AI-based monetization will gain full momentum. Analyst Shin explained, “Generative AI ads will be introduced to AI Briefing, and a revenue model is scheduled to be added to the AI tab in the fourth quarter,” adding, “We also expect revenue growth as a result.”
In the long term, attention was also drawn to the AI Factory business. Analyst Shin noted, “The fact that the company has already secured 200 MW of data center capacity is a strength compared to competitors,” but added, “Plans to secure external customers for the construction of a GW-class AI Factory and to finance the approximately $50 billion investment need to be further detailed.” He went on to forecast, “If everything proceeds as planned, this initiative could begin contributing to profits starting in late 2027.”
Researcher Shin assessed, “The market has already factored in the revenue growth and somewhat disappointing profitability expected for 2026,” adding, “With the current stock price trading at a forward price-to-earnings (P/E) ratio of 17.4x, the valuation burden is not significant, making this a suitable range to consider trading within a range.”