Jefferies Starts IPO Line Corp. (LN) at Buy

Jefferies initiates coverage on today's IPO Line Corp. (NYSE: LN) with a Buy rating and ¥4,200 price target, saying it has a near-monopoly platform positioned at moible ad market.

Analyst Atul Goyal commented, "We initiate on LINE Corp at Buy. It is a near-monopoly platform in Japan. This position is similar to that of Tencent (China), Kakao (Korea), and Facebook (western markets). While game business plateaus, LINE's large / engaged user base in core markets (150m) and position in rapid-growth mobile-ad market are key to profit growth. Adj-NP is set to rise from c. 0 in CY15 to ¥39b by CY18E. Based on EV/Sales (6.9x ad-business, 2.6x games), our PT is ¥4,200 (+27%)."

For an analyst ratings summary and ratings history on Line Corp. click here. For more ratings news on Line Corp. click here.

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