Daishin Securities has maintained its “buy” rating for YG Entertainment while raising its target price from 60,000 KRW ($41) to 65,000 KRW ($45) on February 7th, citing BLACKPINK’s upcoming full-group world tour as a key driver for record-breaking revenue this year. The stock closed at 52,500 KRW the previous day.
Daishin Securities analyst Im Su Jin projects a strong performance boost, stating, “This year, we expect sharp improvements in earnings with expanded activities from BABYMONSTER and TREASURE, along with the long-awaited return of BLACKPINK as a full group,” adding, “Particularly, we believe BLACKPINK’s world tour will likely be announced at a scale exceeding market expectations.”
Im forecasts unprecedented numbers for the tour: “We expect attendance to exceed 40,000 per show,” noting, “Based on previous average ticket prices, the tour alone could generate total revenue of 600 billion KRW ($415 million) and operating profit of 90 billion KRW ($62 million), significantly surpassing their last tour’s revenue of 437.6 billion KRW.”
The analyst further added, “Given the massive success of solo ventures like Rosé’s ‘APT’ last year, we can anticipate increased guarantees and royalties, potentially leading to earnings surprises.”
YG Entertainment officially announced BLACKPINK’s world tour through their official blog, releasing a teaser video.
Im also highlighted YG’s expanding artist roster: “With a new boy group scheduled to debut by year-end, the limited artist lineup that acted as a discount factor for 2024 is expected to improve rapidly.”
Source (1)
