[Click eStock] "YG Entertainment, Optimism for Structural Improvement... Target Price Also Raised"

Hana Financial Investment Issues 'Buy' Rating and Sets Target Price at 37,000 KRW... Closing Price on the 3rd Was 28,400 KRW

[Asia Economy Reporter Kum Boryeong] As YG Entertainment (YG Enter) undertakes structural reform, analysis suggests that expectations for its stock price have risen.

On the 6th, Hana Financial Investment gave YG Enter a 'Buy' rating with a target price of 37,000 KRW. Considering the previous target price was 31,000 KRW, this represents a 19% increase. The closing price on the 3rd was 28,400 KRW.

Researcher Lee Kihoon of Hana Financial Investment said, "The Big Bang tour, which may start as early as the second half of the year, has led us to raise the 2021 earnings estimates by improving efficiency in loss-making business divisions, which in turn raised the target price. Given that this issue was at the center of a major social controversy, it is natural to feel uneasy when considering investment. However, the value of an agency is ultimately linked to musical achievements, and we cannot dismiss YG Enter’s Big Bang, BLACKPINK, and the debut of TREASURE13 this year, which together raise expectations. Additionally, significant benefits are expected once the THAAD restrictions are lifted."

It appears that YG Enter has begun structural reform. The content production division, which recorded an annual loss of 7 to 8 billion KRW, has been discontinued, and the sale of YG Foods, which recorded losses of 2 to 3 billion KRW, is underway.

Big Bang’s activities are also anticipated. The researcher said, "Big Bang has confirmed their appearance at the Coachella Festival in April. Although there were many rumors about contract renewal, it has been confirmed that the direction of contract renewal is not an issue."

This content was produced with the assistance of AI translation services.