HYBE Expected to Record Highest Quarterly Profits on Record... Target Price Reduced

HYBE is projected to achieve its highest quarterly earnings on record in the second quarter. The resumption of BTS’s large-scale world tour and the explosive growth of new group CORTIS are the main driving forces behind this forecast.

Analyst Im Su-jin from Kiwoom Securities stated in a report that “due to the resumption of BTS’s large-scale world tour and the rapid rise of new group CORTIS, second-quarter profits are expected to reach record levels that meet market expectations.” She added, “Given the strong sales of event merchandise planned in advance to meet tour demand, it is entirely possible to achieve a real earnings surprise as well.”

However, Kiwoom Securities lowered its target price from 370,000 won to 330,000 won, a decrease of 10.8%. This target price of 330,000 won is 13.6% lower than the average target price of 382,143 won set by other securities firms over the past six months. Heungkuk Securities also assigned a target price of 330,000 won on the same day.

The average target price set by securities firms over the past six months has declined from 411,000 won to 382,143 won, a drop of 7.0%. This decline is attributed to temporary weakening in the valuation appeal of the entertainment sector due to increased investment flows into specific sectors such as semiconductors. Meanwhile, HYBE believes it is necessary to assign a premium to CORTIS, which is showing an unprecedented growth trajectory.