[Alphabiz=(Chicago) Reporter Kim Jisun] NH Investment & Securities maintained its target stock price of 77,000 won and its "buy" opinion on YG Entertainment. The contract of girl group BLACKPINK is expected to maintain solid performance for the time being amid undervalued stock prices ahead of its maturity this year.
NH Investment & Securities said, "Since the issue related to Yang Hyun-seok was resolved at the end of December, the overall business has accelerated," adding, "It is detected that we are trying to clean up the lineup of some artists and accelerate the progress of projects centered on major artists."
NH Investment & Securities also judged that it is a section that relieves the dependence on a single artist, saying, "The launching teaser for the new girl group 'Baby Monster' was unveiled earlier this month, and G-Dragon himself expressed his willingness to resume his solo career by the end of this year."
NH Investment & Securities recently saw YG Entertainment's stock price undervalued. NH Investment & Securities said, "There is various momentum, but the company's stock price is still undervalued compared to its competitors," adding, "It reflects related concerns as Black Pink's contract expires in August."
However, NH Investment & Securities said, "Considering the actual benefits of both artists and companies, it is more likely that the renewal of the contract will proceed smoothly," and stressed, "It is time to put down excessive concerns."
According to YG Entertainment's consolidated performance in the fourth quarter of 2022, sales rose 64 percent year-on-year to 145.5 billion won and operating profit rose 74 percent to 2.3 billion won, which is expected to meet the consensus (average stock market forecast).
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
