[Asia Economy Reporter Lee Seon-ae] Shares of Big Hit (company name changed to HYBE), the agency of BTS, are showing strong performance. This is due to expectations that global expansion will accelerate following the acquisition of Ithaca Holdings, a US comprehensive media company that includes Ariana Grande and Justin Bieber.
As of 9:44 AM on the 6th, Big Hit is trading at 257,000 KRW, up 3.63% from the previous day. The stock price surged to 261,000 KRW early in the session. The previous day, Big Hit closed up 2.06%.
On the 2nd, Big Hit announced it would acquire Ithaca Holdings for approximately 1.2 trillion KRW. Ithaca Holdings is a comprehensive media holding company founded by Scooter Braun, who has managed world-renowned pop stars, covering music management, record labels, film, and TV shows.
In the securities industry, expectations for strengthened global capabilities have led to successive upward revisions of Big Hit’s target price. Ebest Investment & Securities set the highest target at 502,000 KRW, followed by Hana Financial Investment (360,000 KRW), KTB Investment & Securities (330,000 KRW), and Samsung Securities (320,000 KRW), all raising their price targets.
Ahn Jin-ah, a researcher at Ebest Investment & Securities, stated, "Considering the possibility that external growth will accelerate relative to profit growth, we calculated the target price by newly applying the price-to-sales ratio (PSR) alongside the existing price-to-earnings ratio (PER). Given that this is a highly leveraged industry with high value creation, the corporate value has tremendous potential that is difficult to estimate at the upper limit."
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