Evercore ISI analyst Mark Mahaney lowered the price target on Webtoon Entertainment Inc (NASDAQ: WBTN) to $23.00 (from $27.00) while maintaining a Outperform rating.

The analyst comments "Our View: We maintain our Outperform rating but lower our PT from $27 to $23 in the wake of WBTN’s Miss & Lower Q4 print, its third as a public company. WBTN has negatively pre-released preliminary Q4 results on 2/6, so the actual results were not materially surprising. Q4 revenue of $353MM grew 5.6% Y/Y on a reported basis and 10.4% ex-FX, as the company has very material exposure to Korean and Japanese currency movements. Total MAUs of 163MM declined 3.7% Y/Y, partly a managed outcome as the company focuses on converting is user base from web to app, as app users are more highly engaged and monetize at higher levels. MAUs were also pressured by a government ban on Wattpad in one not-expressionloving country. The key positives were: a) solid double-digit revenue growth on a ex-FX basis; b) Gross Margin continued to expand to 23% or up 140 bps Y/Y on an organic basis, benefitting from structural channel leverage in markets outside of Korea; and c) WBTN delivered its 6 th consecutive quarter of positive EBITDA."