This photo, taken on June 15, 2022, shows the headquarters of Hybe, the agency of K-pop supergroup BTS, in Seoul. (Yonhap)
SEOUL, June 17 (Korea Bizwire) — In the aftermath of BTS’ recent announcement that they will suspend group activities, brokerage firms in South Korea are lowering their target price for Hybe, the management agency of K-pop supergroup, amid expectations of lower future revenues.
Hybe shares dived almost 25 percent percent to 145,000 won after BTS’ announcement on Wednesday.
Hyundai Motor Securities lowered Hybe’s target price from 400,000 won to 285,000 won on the same day.
“It reflects the fact that there will be no BTS tour later this year,” said Kim Hyun-yong, a researcher from Hyundai Motor Securities.
“We’ve lowered our prospects for Hybe’s operating profit from 324 billion won to 225.3 billion won.”
Lee Hwa-jeong, a researcher from NH Investment & Securities, also lowered Hybe’s target price from 440,000 won to 310,000 won.
“We’ve lowered our prospects for Hybe’s performance in the music sector reflecting the uncertainty of BTS’ future group activities. Also, in consideration of the macro-uncertainty, we’ve also lowered our target price-earnings ratio (PER) in the platform sector,” Lee said.
Both Samsung Securities (375,000 won to 270,000 won) and Hana Financial Investment (430,000 won to 360,000 won) also lowered their target price for Hybe.
Ashley Song (ashley@koreabizwire.com)
