HYBE Begins to Escape Undervaluation Phase...Brokerage Targets Range from 360,000 to 400,000 Won

The securities industry is accelerating efforts to restore the valuation of HYBE, a major K-POP entertainment company. NH Investment & Securities and Hana Securities have successively issued buy recommendations as the first half of the year comes to an end. HYBE’s current stock price (previous day’s closing price of 226,500 won) indicates severe undervaluation, and brokerage firms view this situation as an opportunity to purchase shares.

In a report authored by analyst Lee Hwa-jeong, NH Investment & Securities set a target price of 360,000 won, while analyst Lee Ki-hoon from Hana Securities proposed a target price of 400,000 won. Hana Securities’ report analyzed that, based on the current stock price, there is approximately 69.5% additional room for growth.

The basis for this undervaluation assessment is clear. As of 2027, HYBE’s estimated P/E ratio is 23 times, which is even lower than its previous lowest level of 30 times. NH Investment & Securities explained, “Although global peer valuations have declined due to overall industry neglect, our earnings projections remain solid. The market’s concern regarding rising revenue allocation ratios to artists can be fully offset through economies of scale.”

There are abundant performance drivers attracting attention from brokerage firms. NH Investment & Securities analyzed, “There are numerous factors supporting a reevaluation of valuation, including high growth in album sales by younger artists, expanded tours by mid-tier groups, and increased music streaming revenue from older artists and local intellectual property.”

Western market expansion is particularly crucial. NH Investment & Securities stated, “While BTS’s new album continues to generate long-term streaming benefits, the growing presence of rookie artist CORTIS in Western markets is expected to contribute significantly to future tour earnings. Additionally, the successive entries of local group Katseye on the Billboard Hot 100 clearly demonstrate their appeal in Western countries, and 27 arena tours across North America and Europe in the second half of this year will drive substantial growth.”

The consensus among brokerage firms is also positive. The average target price set by all securities firms over the past six months is 404,762 won, representing a 3.3% increase compared to the previous six-month average of 392,000 won.