Samsung Securities Cuts Kakao Target Price to 44,000 Won on Weak AI Execution

Kakao3.10%
According to Samsung Securities on July 15, the brokerage cut its target price for Kakao to 44,000 won (US$29) from 60,000 won (US$40), citing weak AI execution, slowing core businesses, and labor unrest. The firm still expects Kakao's second-quarter operating profit to rise 18% year-on-year to 231.1 billion won (US$155 million), but noted that gains were driven mainly by cost controls rather than stronger underlying businesses. Analysts said Kakao's AI agent strategy—including its ChatGPT partnership with OpenAI—has yet to show clear monetization or meaningful market differentiation.
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