“No optimism priced into the current share price—a buying opportunity”... NAVER target price: 310,000 won

[Financial News] Shinhan Securities maintained its “Buy” rating on NAVER on the 19th, saying it was time to focus on medium- to long-term growth through artificial intelligence (AI) data centers and AI agents, and raised its target price by 14.8% to 310,000 won.
In a report released that day, Ko Jun-hyeok, a researcher at Shinhan Securities, said, “We expect new revenue streams to be created through AI data centers and the existing platform’s revenue base to expand through AI agents,” adding, “We look forward to expanding the ecosystem beyond agentic AI to physical AI.”
He identified AI factories as a key growth driver. The model involves acquiring assets such as graphics processing units (GPUs) and data centers with external capital, while NAVER focuses on customer acquisition and service operations. “By using external capital to share the direct capital investment burden, NAVER can focus on monetization through customer acquisition and operations,” Ko explained. “This minimized the financial burden by avoiding the need to directly shoulder large-scale equipment investments.”
AI factories plan to expand supply capacity from 55 megawatts (MW) in the first half of next year to a cumulative 100 MW by the end of next year and 200 MW by 2028. “We expect related revenue to begin in the first half of next year,” Ko said. “For 2028, we project revenue of 3.9 trillion won and operating profit of 473.9 billion won.” The target price reflects an estimated enterprise value of about 5.6 trillion won for the AI factories, based on their 2028 performance and converted to present value.
In its consumer-facing AI business, the report highlighted the “Agent N” strategy. “We will enhance our services by applying AI to our existing advertising and commerce businesses,” Ko said, adding, “We expect to gain an early lead among users in Korea with hyper-personalized AI agents, building on data accumulated over decades and adding logistics integration and creator partnerships.”
However, operating revenue this year was estimated at 13.8239 trillion won, up 14.9% from the previous year, while operating profit was projected at 2.0493 trillion won, down 7.2%. Increased spending on commerce promotions and installation costs for NAVER Pay Connect terminals were cited as factors behind the slowdown in profitability.
The key to future share price gains will be securing customers for AI data centers and clarifying contract terms. “If the prices charged to customers do not align with the terms for procuring computing resources, the benefits of using external capital could be limited,” Ko emphasized. “A premium can be assigned only once contract terms with customers have been clarified.”
[email protected] Joo Won-gyu Reporter