Kakao, KR7035720002

Kakao stock: LS Securities cuts target to KRW 42,000

Published on 10/30/2026 at 02:56 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Kakao stock faces a lower valuation target as LS Securities cites delayed AI monetization and external commerce integration. The broker keeps its Buy rating.

Analysten senken Kakao-Erwartungen

LS Securities begründet die Anpassung mit verzögerten KI- und E-Commerce-Beiträgen sowie Unsicherheit rund um die geplante Abspaltung.
Kakao plant Tests für den KI-Agenten Kanana Space ab Dezember und einen Start der Plattform Kanvas im ersten Halbjahr 2027.

Kakao, KR7035720002, Illustration mit AI erstellt.

LS Securities lowered its target price for Kakao from KRW 55,000 to KRW 42,000 while maintaining a Buy rating, according to Aju Press. The report was published on October 15, 2026, and reflects the broker's assessment at that time rather than a new announcement on the publication date.

Delayed monetization weighs on target

LS Securities said Kakao's artificial-intelligence services have growth potential, but their meaningful contribution to revenue is likely to take time. The broker also pointed to delays in external commerce integration and uncertainty over the company's valuation following the planned spin-off.

For the third quarter, LS Securities forecast consolidated revenue of KRW 1.9664 trillion, up 0.2 percent year on year, and operating profit of KRW 228.1 billion, up 1.9 percent. The projected operating margin was 11.6 percent. TalkBiz revenue was estimated at KRW 606.6 billion, while content revenue was expected to decline 9.0 percent to KRW 821.0 billion.

AI plans still offer a potential catalyst

Kakao outlined its personalized AI strategy at the 'if Kakao' event held on October 13-14. The company plans to test the KakaoTalk-based AI agent Kanana Space as early as December and launch the PC-based Kanvas agent platform in the first half of 2027. LS Securities viewed the platform's large domestic user base as a strength, but said accuracy, usefulness and financial contribution still need to be demonstrated.

Kakao company facts

Company: Kakao Corp.
ISIN: KR7035720002
KOSPI code: 035720
Home exchange: KOSPI
Broker target-price change: KRW 55,000 to KRW 42,000
Broker rating: Buy maintained

Investors are also weighing the broader direction of South Korean technology shares and the execution risk attached to AI monetization. See current market reports for the wider market context.

For more company-specific coverage, see more news and analyses on Kakao stock.