Following the recent Naver Pay spinoff announcement, expect significant upside in Korea’s search engine giant Naver's (NHNCF) shares. Despite the hefty outperformance this year, I firmly believe there is further room for the stock to run.
Multiple price levers underpin this premise, including Naver's core business' improving fundamentals, the spin-off of Naver Pay, and an increase in capital return to shareholders.
At current prices, I do not think the market has properly accounted for these tailwinds - a Sum-of-the-Parts valuation (excluding Naver Pay and Webtoon) implies a further upside of 19.5% from current