[Click eStock] "JYP Entertainment, Recovering Investor Sentiment... Target Price Up"

Target Price Raised by 17% Compared to Previous Level

NH Investment & Securities on the 29th raised the target price for JYP Ent. from 77,000 KRW to 90,000 KRW, citing a recovery in investment sentiment. The investment rating was maintained as 'Buy.'

Researcher Hwajeong Lee of NH Investment & Securities stated, "With the announcement of Stray Kids' Western stadium tour schedule and the confirmation of the debut schedule for the new boy group, market doubts about JYP Ent.'s mid- to long-term growth potential have been resolved," adding, "Therefore, the target price-to-earnings ratio (PER) was raised by 20% from the previous level to 26 times."

JYP Ent.'s fourth-quarter performance this year is expected to exceed market expectations. Lee said, "Consolidated sales for the fourth quarter are projected to increase by 3% year-on-year to 162 billion KRW, and operating profit is expected to rise by 12% to 42.3 billion KRW, surpassing consensus (average securities firm forecasts). Although operating expenses remain a burden, the expansion of sales due to major artists' activities will help maintain an operating profit margin of 26%."

There is an opinion that momentum is abundant due to the large-scale Stray Kids concerts, the debut of the rookie group Kickflip, and the possibility of resuming performances in China following improvements in the external environment. Stray Kids' world tour is mostly at the stadium level (45,000 attendees per show), with 42 shows currently announced, but there is a high possibility of about 15 additional shows including encore performances. Lee analyzed, "The forward PER for 2025 is 21 times, somewhat higher than competitors (19 times), but considering that there are two artists currently conducting stadium tours, the premium can be justified."