Brokerages cut Kakao targets as split raises valuation concerns

Kakao's plan to split into two listed companies, Kakao AI and Kakao X has prompted a streak of target price cuts from brokerage houses, citing concerns over a potential holding company discount and the profitability of its AI business. According to reports released by 11 securities firms on Kakao on Monday, five lowered their target prices for the company: Hana Securities, Kiwoom Securities, Samsung Securities, Meritz Securities and Daol Investment & Securities. Kiwoom Securities cut its target