YG Entertainment is expected to see a rise in stock prices and a return to profitability next year due to the active comebacks and world tours of its artists. Hana Securities has raised YG’s target stock price from 49,000 KRW to 53,000 KRW. This is an increase from the previous closing price of 44,200 KRW.
According to Hana Securities’ analysis, YG Entertainment recorded an operating loss of 19 billion KRW this year but is projected to achieve an operating profit of 45.6 billion KRW next year, marking a return to profitability. Additionally, by 2026, the operating profit is expected to reach 63.4 billion KRW.
Researcher Lee KiHoon stated, “Next year, the comebacks and world tours of BABYMONSTER and TREASURE are scheduled, and for 2NE1, which recently started a new tour, the tour areas are expanding due to high demand.” Particularly, BLACKPINK, which is receiving significant market attention, is anticipated to have a comeback and world tour in the second half of next year. They have previously recorded operating profits of around 100 billion KRW over four quarters, and similar levels of profits are expected this time as well.
Moreover, the comeback of TREASURE and the return of WINNER from military service are expected to improve performance next year. This analysis, not only from Hana Securities but also from NH Investment & Securities, Samsung Securities, and Eugene Investment & Securities, has led to an upward revision of the target stock price, highly evaluating YG Entertainment’s future potential.
Researcher Lee HyunJi from Eugene Investment & Securities remarked, “Next year is expected to be a prosperous year, unlike this year, which lacked artist activities.” The upcoming achievements of YG Entertainment next year are highly anticipated.
