The stock market is lowering YG Ent’s target stock price due to its expected poor performance in the fourth quarter.
The stock market’s view of YG Entertainment has changed rapidly in the past two months. In November last year, EBEST Invest raised the agency’s target price from 75,000 won to 95,000 won, saying, “Album, DVD, and digital content sales have driven the company’s performance,” adding, “BLACKPINK’s comeback and world tour are expected in the first half of 2022 and various content businesses through VLive and Weverse are possible.”
Another factor that lowers expectations for YG Entertainment is that its artist activities are sluggish compared to its competitors.
In fact, the company’s stock price has shifted downward since November last year. YG Ent’s stock prices have been weak since late last year as its expectations for a reopening have been dampened by the unexpected spread of the new virus mutations. YG shares had been traded at up to 75,800 won on November 12th last year, closed at 51,100 won as of today, which means its stock prices have fallen about 32% in two months.
Related industries analyze that a BIGBANG’s comeback could become YG Entertainment’s stock price conversion momentum this year. BIGBANG, which debuted as a five-member male group in 2006, became a four-member group after member Seungri withdrew due to the so-called “Burning Sun Case” in 2019. Since then, the group has been included in the lineup of large U.S. music festivals in 2020, and the prospect of a “four-member” comeback has been announced. However, this comeback schedule has been postponed due to the pandemic. On the other hand, when asked about the timing of BIGBANG’s comeback this year, YG Entertainment drew a line, saying, “We are discussing internally, but it has not been decided yet.”