Korea Investment & Securities Co. on the 24th said it expects earnings at YG Entertainment (YG엔터) to improve as artists such as BABYMONSTER and Blackpink expand their activities.
It kept its investment opinion at "buy" and raised its target price to 87,000 won from 85,000 won. YG엔터's closing price in the previous trading day was 54,000 won.
Korea Investment & Securities Co. predicted that sales growth driven by YG엔터's artist activities will continue. Jeong Ho-yoon, an analyst at Korea Investment & Securities Co., said, "As fandoms for lower-tenure artists such as Treasure and BABYMONSTER expand, their contribution to sales is expected to gradually increase."
Jeong said, "Among the lower-tenure artists, BABYMONSTER in particular is growing solidly," adding, "They successfully wrapped up 32 shows on their first world tour, plan to release a mini album in May, and will put out a second full-length album in the fall."
Treasure will also release a new mini album in June this year and go on tour, and a new boy group is set to debut in the second half.
Active tours by the higher-tenure acts are also continuing. Following Blackpink, which resumed activities on the 27th of last month, Big Bang plans to make a comeback in the second half of this year.
Jeong said, "Because Blackpink debuted in Aug. 2016 and this year marks their 10th anniversary, there is a high possibility of additional tours," adding, "Big Bang is also set to return with a Coachella stage in April, and after the return, CEO Yang Hyun-suk has officially announced a global tour in the second half."