Possible Delay in BLACKPINK’s Group Activities Leads to Sharp Drop in YG’s Target Stock Price
Experts have lowered YG Entertainment's target stock price by 18% due to possible BLACKPINK activity delays
On February 4th, Hana Securities lowered YG Entertainment’s target stock price by 18%, stating that if BLACKPINK’s group activities are delayed compared to previous expectations, YG Entertainment’s performance will show high volatility.
Researcher Lee Ki-hoon assumed in the report that BLACKPINK would make a comeback before the Olympics this year, but speculated that if they come back in the fourth quarter followed by a world tour in 2025 and another comeback in 2026, annual performance volatility would increase.
In particular, he speculated that “BLACKPINK will have large-scale tours similar to world tours with long gaps in between,” and YG Entertainment “is likely to experience similar fluctuations in stock prices due to high dependency on BLACKPINK’s performance.”
Accordingly, he estimated that YG Entertainment’s operating profit for this year would be about 50 billion won, and around 90 billion won in 2025, lowering the target stock price from 78,000 won to 64,000 won.
However, he said, “Ultimately, to resolve this, it is necessary for BABYMONSTER, with Ahyeon’s joining, to be strong enough to break the competitive structure of powerful female idols. We need to confirm BABYMONSTER’s influence of the April album comeback.”
