Kakao (035720) rose more than 1% during trading on the 26th. The gains come as securities firms analyze that the physical spin-off has made the value of each business and the company's future growth direction clearer.

Kakao was trading at 36,550 won, up 450 won (1.25%) from the previous session, continuing its strength in the 36,000-won range.

On the 24th, Daol Investment & Securities issued a new report on Kakao titled "Clearer Pros and Cons Confirmed by the Spin-Off," giving it a 'BUY' rating and a target price of 45,000 won. Based on the previous day's closing price at the time of the report, the target price represents about 25.7% upside from the current share price.

The securities firm placed significance on the fact that the spin-off allows Kakao's business structure and the value of each segment to be more clearly delineated than before. The interpretation is that as growth potential, profitability, and investment burdens are separated and revealed by business, an environment has been created in which the market can evaluate the value of each business in greater detail.

A spin-off is a method in which existing shareholders hold shares of the divided companies at a certain ratio. For companies, it has the advantage of separating businesses with different characteristics to improve management efficiency and pursue investment strategies suited to each business. However, if the growth and profitability of individual businesses after the split fall short of market expectations, valuations could change.

Kakao holds diverse business groups, including platforms, content, and finance, meaning changes in its business structure could directly affect its enterprise valuation. Accordingly, the market is expected to watch the independent growth strategies of each business unit and whether profitability improves after the spin-off as key variables.

Meanwhile, although the share price is showing strength in the 36,000-won range today, the securities firm's target price is an estimate calculated by reflecting future business restructuring and earnings forecasts. It does not mean the share price will actually rise to the target level, and the enterprise valuation may vary depending on the spin-off process, business-by-business performance, and the platform industry environment.

[Stocks may experience greatly expanded price volatility depending on domestic and overseas market trends, industry supply and demand, corporate earnings and disclosures, commodity prices, and policy changes. There is a possibility of sharp short-term gains or losses due to changes in investor sentiment, so future direction should not be determined solely by intraday fluctuations. Please comprehensively check official disclosures, earnings, business progress, and market supply and demand. This article is not intended to recommend buying or selling specific stocks or to guarantee investment returns. This article was written with AI assistance.]