Nexon Slumps After at Least Two Brokers Cut Ratings: Tokyo Mover
Nexon Co. (3653) the Japanese maker of online game MapleStory, fell the most in 15 months in Tokyo trading after it forecast earnings that missed analyst estimates and having its rating cut by at least two brokers.
The stock fell 21 percent to 877 yen at the close in Tokyo, the biggest fall since August 2012. JPMorgan Chase & Co. reduced its recommendation on the Tokyo-based company to neutral from overweight and cut its share price forecast 19 percent. Deutsche Bank AG lowered the stock to hold from buy.
Nexon forecast full year net income of 39.4 billion yen ($398 million) to 40.3 billion yen, missing the 43.5 billion yen average estimate of thirteen analysts surveyed by Bloomberg. The company is seeking to win market share as North American consumers shift from dedicated consoles with packaged titles to free, online games,
“The company seems to be struggling more than we had anticipated near term,” Deutsche Bank analysts led by Hanjoon Kim wrote in a Nov. 10 report. “We see a lack of catalysts to drive the stock.”
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