Brokerages Cut Kakao Targets After Split Plan Sparks Valuation Concerns
Kakao’s plan to split into two listed firms, Kakao AI and Kakao X, has driven a wave of brokerage target cuts. Reports from 11 securities houses on Monday showed five reductions and some buy-to-hold downgrades, citing a potential holding-company discount and worries about AI profitability. Kakao’s shares steadied at 35,800 won after Friday’s split announcement erased more than 1 trillion won in value.