South Korean securities firms have raised Naver’s target price, expecting strong growth in artificial intelligence (AI), following the company’s breakthrough performance last year. The tech giant became the first Korean internet platform to surpass 10 trillion won in annual revenue, with consolidated revenue reaching 10.7377 trillion won, up 11.0% from the previous year. In the fourth quarter, revenue grew 13.7% to 2.8856 trillion won, while operating profit surged 33.7% to 542 billion won, year-on-year.
Sangsangin Investment & Securities set Naver’s target price at 310,000 won on Feb. 10, up 24% from the previous target of 250,000 won and 37% higher than the current price of 225,500 won.
Other brokerages also raised their estimates, including Hana Securities, which increased its target by 8%, from 250,000 won to 270,000 won, and IBK Investment & Securities, which raised its target by 15%, from 260,000 won to 300,000 won.
IBK Investment & Securities analyst Lee Seung-hoon said, “Naver’s revenue growth last year was driven by its highly profitable search platform,” adding, “Optimized commerce ads and AI-powered search efficiency further improved profitability.”
Hana Securities forecasts Naver’s consolidated revenue to reach 11.6529 trillion won and operating profit to hit 2.3443 trillion won this year, up 8.5% and 18.4% year-on-year. Advertising revenue growth is expected to accelerate, in particular.
Hana Securities analyst Lee Jun-ho said, “This year will be pivotal for Naver’s advertising competitiveness.” He projected that Naver’s ad revenue would grow 9.6% to 5.475 trillion won this year, up from 5 trillion won last year. Lee also noted, “Improved efficiency in the advertising sector will boost profitability, even as the company continues investing in strengthening its commerce and AI capabilities.”
The securities industry is also optimistic about Naver’s AI business. Choi Seung-ho of Sangsangin Investment & Securities noted, “Naver’s main investment focus was on regaining domestic market share, but with DeepSeek, AI has become a key factor,” adding, “Now is the crucial turning point.”
Analysts suggest that while Naver and Kakao struggled to establish themselves as AI software players from 2023, when ChatGPT ignited the AI boom, to 2024, as AI technology evolved, the situation has now changed. Choi said, “In particular, AI is now being more vigorously applied to Naver’s services,” adding, “Naver is estimated to have significantly reduced AI costs compared to the past, before DeepSeek, and is likely to achieve further cost efficiencies following this DeepSeek.”
Jung Ho-yoon, an analyst at Korea Investment & Securities, noted, “Recent advancements in AI technology have increased the potential to close the gap with global tech giants at a lower cost. By applying AI across Naver’s diverse services, the company is expected to generate added value.”
