NCsoft shares surged over 6% during intraday trading, driven by a new equity research report from Bukuk Securities and expectations for improved second-quarter earnings.

As of the afternoon session on the 29th, NCsoft's stock was trading at 253,000 won, up 15,000 won (6.30%) from the previous trading day. Buying interest flowed in from the early hours of the session, widening the gains, with the stock price reaching as high as 258,000 won during the day.

On this day, Bukuk Securities initiated coverage on NCsoft with an investment opinion of 'BUY,' stating that the company is "simultaneously pursuing earnings normalization and the exploration of new growth drivers." The brokerage set a target price of 300,000 won, analyzing that the stock has approximately 26.1% upside potential based on the previous day's closing price.

Bukuk Securities projected that NCsoft will enter an earnings normalization phase in the second quarter. On a consolidated basis, Q2 revenue is expected to reach 641.4 billion won, a 67.7% increase year-on-year, while operating profit is anticipated to surge 800% to 120.8 billion won. The report noted that a significant portion of the downward stabilization in sales from existing legacy IPs has been completed, with daily revenue from key games being maintained at stable levels. It forecasted that the trend of earnings improvement will continue as a full quarter of revenue is reflected.

Expansion into overseas markets was also highlighted as a core growth driver. NCsoft entered the Southeast Asian market in May and the Chinese market in June. The tangible contribution to earnings from these expansions is expected to begin materializing in earnest from the third quarter of this year.

Market analysts suggest that expectations for an earnings recovery and overseas business expansion are being positively reflected in the stock price. However, the future trajectory of the shares will likely depend on key variables such as the performance of new titles, the pace of overseas revenue growth, and the sustainability of earnings improvements. The combination of a positive new brokerage report and expectations for an earnings turnaround is drawing concentrated attention from investors.

[※ This article is not intended to solicit investment. The final judgment and responsibility for all investments lie with the investor.]