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Bang Si-hyuk is the founder and CEO of HYBE |
[Alpha Biz= Reporter Kim Minyoung] NH Investment & Securities has revised its target price for HYBE from 310,000 won to 280,000 won, while maintaining its "Buy" rating.
NH Investment & Securities stated, "Currently, HYBE's price-to-earnings ratio (PER) is 22 times, which is lower than the historical bottom seen at the end of 2022 when concerns over performance decline due to BTS military enlistment were at their peak."
The firm emphasized the need to focus on the abundant long-term growth drivers rather than the short-term performance decline due to existing artist fanbase attrition.
Although the early performance of TXT and NewJeans was disappointing, the rapid growth of new groups like BOYNEXTDOOR and TO1 stands out. SEVENTEEN continues to show steady early sales, and the debut costs for the US girl group CAT’S EYE are expected to be partially reflected in the Q2 results.
NH Investment & Securities noted, "With meaningful fanbase growth across lower-tier artists and the completion of Ariana Grande's Weverse entry, we have lowered our target price to 280,000 won. This adjustment accounts for the transitional phase of simultaneous performance decline among high-tier artists and growth among lower-tier artists, as well as a 10% reduction in our annual album sales estimate."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
