Leading Investment Securities analyzed on the 17th that YG Entertainment is expected to hit rock bottom in the fourth quarter of this year, with performance set to rise significantly next year. Therefore, it maintained a 'buy' investment opinion but slightly lowered the target price to 70,000 won. On the previous trading day, YG Entertainment closed at 46,950 won.
According to Leading Investment Securities, YG Entertainment's consolidated sales this year are expected to be 362.5 billion won, a decrease of 36.3% compared to the same period last year. It is also projected to incur an operating loss of 24.7 billion won.
Yoo Seong-man from Leading Investment Securities said, 'The absence of BLACKPINK and the slower-than-expected growth of other groups are likely to lead to overall poor performance,' adding that he anticipates the fourth quarter performance will hit bottom.
Nonetheless, Yoo noted, 'Next year, the full group activities of BLACKPINK (global tour), Baby Monster's full-fledged growth, an increase in Treasure's activities, and WINNER's complete comeback are expected to result in performance recovery.'