The current stock price of HYBE has fallen down too much, and this may be due to uncertainties over BTS, said experts.
On the stock market, HYBE fell again after hitting a 52-week low and suffering from a whopping 70% drop from last year’s peak. Regarding such a trend, securities analysts evaluated that uncertainties about BTS are being overly reflected in the stock price.
According to the Korea Exchange on October 8th, HYBE closed at 123,000 won, down 8,000 won (6.11%) from the previous trading day. At one point during the day, it traded at 121,000 won, down 7.63%, and set a record for the new low.
HYBE’s stock price has been falling after peaking in November last year. In particular, it is analyzed that prolonged uncertainties over BTS‘ group activities and members’ enlistment-related issues are weighing on the share price. As a result, the current stock value has fallen by a whopping 70.81% compared to the high of 421,500 won on November 17th last year.
In this situation, securities firms are also lowering their target price for HYBE. This is shown via reports of various securities firms’ research centers, which all lowered their target prices.
Specifically, Hyundai Motor Securities, which published a report on October 4th, lowered its target price from 250,000 won to 210,000 won, while Daol Investment & Securities lowered its target price from 240,000 won to 180,000 won. NH Investment & Securities lowered it from 310,000 won to 250,000 won, while Samsung Securities lowered it to 210,000 won from 270,000 won.
Nevertheless, these firms judged that HYBE’s stock price plunge was excessive. The fundamentals have been obscured by noise, they said. Choi Min-ha, a researcher at Samsung Securities, expressed, “Artists who debuted this year are also making remarkable achievements and are quickly settling down in the market, leading to future growth.”
Lee Hwa Jeong, a researcher at NH Investment & Securities, also emphasized, “The sluggish share price trend continues due to uncertainties related to BTS. Considering that BTS activities have not completely stopped and the high performance of other lineups such as SEVENTEEN, TXT, and New Jeans, the current share price decline is somewhat excessive.” As a result, some predict that positive growth will continue in the upcoming year, helping to bottom out the current performance.
Finally, Kim Ha Jeong, a researcher at Daol Investment & Securities, said, “SEVENTEEN and TXT have been seeing rapid fandom growth through their sales since August. Considering that HYBE is also developing new games, the market’s assumption that there will be little growth next year is too conservative.” He also added, “BTS is expected to make a comeback after 2025. If growth is possible next year, operating profit of about 60 billion won in the current quarter is at a low performance level.”