Korea Investment & Securities Lowers SM’s Target Stock Price as aespa and Red Velvet’s Album Sales Fall Below Expectations

The adjustment brings the stock price down from 167,000 won (125 USD) per share to 150,000 won (112 USD) per share, reflecting concerns about SM Entertainment’s performance in Q4 of 2023.

Researcher Ahn Doyoung shared insights in a report released on the same day. He anticipates that SM Entertainment’s operating profit in Q4 will likely be 28.4 billion won (21.2 million USD), falling short of the market’s earlier projection of 34.8 billion won (26 million USD).

The key factor contributing to this subdued outlook, according to researcher Ahn, is the underwhelming album sales of aespa and Red Velvet. aespa’s sales stand at 1.26 million copies, while Red Velvet managed to sell 600,000 copies, both falling below the industry’s expectations.

These adjustments indicate a cautious sentiment among investors, highlighting the impact of album sales on the overall financial health of entertainment companies. 

Source: naver