LY Corp 4Q Earnings

Goldman Sachs reinstates LY Corp. at Neutral with a ¥450 price target, noting that while adjusted EBITDA growth is robust due to PayPay and cost optimization, core search and commerce segments face structural maturity.

Key Takeaways

• 1.Goldman Sachs reinstates coverage of LY Corp at Neutral with a 12-month price target of ¥450, citing a fair valuation despite robust near-term profit growth.
• 2.The search advertising business is facing structural headwinds from AI-driven search competition and a long-term downward trend in market share compared to Google.
• 3.Strategic growth is primarily driven by PayPay, while the core media and commerce segments are entering a mature, slower-growth phase.

Table of Contents

• Key points from earnings
• Reinstate rating at Neutral
• Topic (1): Our view on the search ad business
• (2): Our view of the media business excluding search ads/commerce business
• (3): Earnings estimates/valuation
• Price Target Risks and Methodology - LY Corp.
• Disclosure Appendix

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial