Hyundai Motor Securities has raised its target price for YG Entertainment by 10%, from 50,000 to 55,000 won ($34 to $38), maintaining a “buy” stance. The adjustment reflects growing anticipation for world tours by rookie sensation BABYMONSTER and K-pop powerhouse BLACKPINK.
However, the firm projects YG’s fourth-quarter 2024 results to fall below market expectations, with revenue at 98.7 billion won ($68 million) and an operating loss of 2.9 billion won.
Analyst Kim Hyun Yong from Hyundai Motor Securities explains, “Revenue is expected to decrease due to minimal activity besides BABYMONSTER’s album comeback, with virtually no concert attendance during this period. The combination of reduced scale and increased fixed costs will inevitably lead to continued losses.”
Nevertheless, 2025 looks promising, with performance improvements expected to be driven by BABYMONSTER’s debut world tour and BLACKPINK’s full-group promotions.
Kim predicts, “BABYMONSTER is scheduled to conduct their first world tour from January to April, comprising 19 shows with an expected attendance of 300,000. We anticipate a meaningful turnaround in performance starting from the second quarter when the world tour revenue begins to reflect in the books.” He also forecasts that BLACKPINK’s full-group world tour, planned for the latter half of the year, will significantly impact fourth-quarter results.
On BLACKPINK’s upcoming activities, Kim adds “The full-group activities are guaranteed through their contract renewal, and there’s no uncertainty about their world tour launching in the second half of the year. The global success of Rosé and Jennie’s musical comebacks will serve as a positive factor for this year’s tour, which is expected to attract at least 2 million attendees.”
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