Kiwoom Securities reiterated a BUY recommendation and target price of 65,000 won for Shift Up (ticker: 462870) on the 15th, reconfirming the company as its top pick within the gaming sector.
Valuation and Current Share Price
Shift Up's share price stood at 32,150 won as of the 12th, implying a market capitalisation of approximately 1.8857 trillion won. The gap between the current share price and the target price is roughly 102%.
Kiwoom Securities analyst Kim Jin-gu derived the target price by applying an implied price-to-earnings ratio (PER) of 12.5x to estimated 2029 controlling-interest net profit of 406.3 billion won, then discounting that figure to present value using an annual discount rate of 10%.
Key Catalyst: *Stellar Blade: Blood Rain*
The central catalyst highlighted in the report is in-game footage of *Stellar Blade: Blood Rain* unveiled by Shift Up at Summer Game Fest 2026. Kiwoom Securities estimates 5.73 million units of packaged sales for the title in 2029. The forecast assumes a Q1 2029 launch with a simultaneous release across PC and console platforms.
Live-Service Game *Nikke* Performing Ahead of Estimates
Revenue trends for the live-service title *Nikke* were also assessed positively. According to data aggregators, *Nikke*'s monthly year-on-year revenue growth came in at 131.3% in April and 37.2% in May of this year — both ahead of Kiwoom Securities' estimate for Q2 *Nikke* global revenue (a 10% year-on-year increase, excluding China).
Financial Outlook
Near-term earnings are expected to contract before a sharp recovery upon the release of the new title. Kiwoom Securities projects the following for Shift Up:
Year | Revenue | Operating Profit | YoY Revenue Change | YoY Operating Profit Change
2026 | 216.4 billion won | 114.8 billion won | −26.5% | −36.7%
2027 | 199.2 billion won | 93.3 billion won | Further decline | Further decline
2029 | 707.2 billion won | 488.7 billion won | Substantial growth | Substantial growth
Whilst revenue and operating profit are forecast to decline meaningfully in both 2026 and 2027, the anticipated launch of the new title is expected to drive a sharp rebound in 2029, with revenue surging to 707.2 billion won and operating profit reaching 488.7 billion won.