[Feature Stock] "BLACKPINK Is Coming" YG Entertainment Surges Over 10% as Brokerages Raise Target Prices

YG Entertainment saw a double-digit surge in the domestic stock market on August 11. This sharp rise was driven by consecutive quarterly earnings surprises and heightened expectations for BLACKPINK's upcoming world tour and new album in the second half of the year, leading to a series of upward target price revisions by securities firms that day.

As of 2:10 p.m. on this day, YG Entertainment's stock was trading at 102,900 won per share, up 10.41% from the previous session. This upward trend is attributed to the release of positive analyst reports, including target price increases for YG Entertainment. The previously announced consolidated second-quarter results significantly exceeded market consensus, with sales of 100.4 billion won (+11.6%) and operating profit of 8.4 billion won (a turnaround to profit).

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Hana Securities, Hanwha Investment & Securities, Meritz Securities, iM Securities, and Eugene Investment & Securities all raised their target price for YG Entertainment to 130,000 won per share in reports released that day.

Park Sooyoung, an analyst at Hanwha Investment & Securities, stated, "This earnings surprise was achieved solely with the relatively new IP, Babymonster. From the third quarter, BLACKPINK will be added to Babymonster for at least four consecutive quarters. Earnings surprises are expected to continue," raising the target price to 130,000 won per share.

Lee Kihun, an analyst at Hana Securities, also said, "Reflecting three consecutive quarters of significant earnings surprises, we are raising our target price by 8% to 130,000 won per share," adding, "There have been continued surprises in music and MD sales. This is expected to accelerate further in the second half as BLACKPINK's world tour is reflected." Kim Minyoung, an analyst at Meritz Securities, commented, "With the shortened monetization period for new IPs and the impact of BLACKPINK's activities, there is a high likelihood that results in the second half will exceed expectations." Along with the target price revision, she presented this year's consolidated sales and operating profit forecasts at 589 billion won (+61.4%) and 85.7 billion won (a turnaround to profit), respectively.

Additionally, Samsung Securities and IBK Investment & Securities raised their target prices to 126,000 won and 120,000 won, respectively. Kim Youhyuk, an analyst at IBK Investment & Securities, evaluated the second-quarter results as "a surprise driven by Babymonster," and noted that BLACKPINK's tour (third quarter), TREASURE's new album (third quarter), new albums from BLACKPINK and Babymonster (fourth quarter), and Babymonster's fan concert (fourth quarter) are all scheduled for the second half of the year.