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YG Entertainment |
[Alpha Biz= Reporter Kim Sangjin] Korea Investment & Securities has lowered its target price for YG Entertainment (122870) from 57,000 won to 48,000 won, citing weak second-quarter performance. The firm's report on the 22nd forecasted a 29% drop in revenue and an 88% decline in operating profit for YG Entertainment compared to the previous year. The expected figures are 113 billion won in revenue and 3.6 billion won in operating profit, falling short of the consensus estimate of 6.9 billion won in operating profit.
The firm maintains a "Buy" rating but notes that the company's performance will likely improve in the latter half of the year. However, they anticipate that 2024 will be a preparatory period with substantial contributions from new acts like Treasure and Baby Monster, while Blackpink’s absence will impact current revenue. Despite the lowered target price, Korea Investment & Securities expects a strong rebound in the stock in the fourth quarter when Blackpink's activities become more visible.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
