"NHN Corporation (NHN) could reach 1 trillion won in cloud revenue in 2028 as it expands data centers ... price target raised"

[Financial News] Meritz Securities forecast that NHN would achieve 1 trillion won in cloud business revenue a year ahead of schedule, in 2028, driven by the expansion of its artificial intelligence (AI) data centers. It maintained its 'Buy' rating and raised its target price from 80,000 won to 95,000 won.
Meritz Securities analyst Lee Hyo-jin said on the 11th, "NHN's consolidated revenue and operating profit for the third quarter were 758.3 billion won and 58.8 billion won, respectively, up 21.2% and 112.6%, respectively, from a year earlier and exceeding expectations," adding, "The results showed how economies of scale affect earnings after a turnaround."
NHN Cloud's revenue rose 10% quarter on quarter, helped in particular by infrastructure upgrades at its existing facilities in Gwangju and Pangyo. Expansion of the cloud business is also expected to gather pace. NHN plans to raise its data center operating capacity to 100 MW by the end of 2028, after previously planning to expand it to 60 MW by the end of 2027. It plans to secure additional facilities with a combined capacity of 12 MW in Gasan, Seoul, and Gajwa, Incheon, and begin operations in the first half of 2027. As a result, cloud business revenue is forecast to reach 1.1334 trillion won in 2028, a year earlier than initially expected.
The analyst forecast that NHN's consolidated operating profit would rise from 205.2 billion won this year to 301.8 billion won in 2027 and 462.1 billion won in 2028. He said, "The company is actively capitalizing on favorable conditions in its end market through leasing," adding, "As it continues to streamline non-core businesses and cloud grows rapidly, cloud is driving company-wide earnings."

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