IBK Investment & Securities cut its target price for South Korea's Kakao (035720.KS) by 27.4%, from ₩73,000 to ₩53,000, while maintaining its Buy rating. The new target applies a two-year average price-to-book ratio of 1.8x to projected 2027 book value per share and implies approximately 58% upside from Kakao's ₩33,550 closing price on the 18th. The brokerage said uncertainty is likely to increase during the early stages of the planned spin-off and that weakened investor sentiment will take time to recover. Kakao shares have fallen 35% over the past six months and 48% over the past year. IBK lowered its current-year earnings-per-share forecast by 14.9% to ₩1,396, but raised its 2027 forecast by 6.9% to ₩1,940, preserving its view that profitability and capital efficiency can improve over the medium to long term. The approved restructuring will create Kakao AI as the new entity and leave Kakao X as the surviving entity, with shareholders receiving shares in both without additional capital contributions or dilution. The split is scheduled to take effect on January 1, 2027, followed by listing changes and relisting on January 27. Kakao AI will focus on KakaoTalk, AI, advertising and commerce, while Kakao X will manage subsidiaries and pursue investments in techfin, content, mobility and new businesses. IBK said the stock's re-rating will depend on whether those businesses deliver measurable improvements after the overhaul.