[Market Focus] "Entering Total Addressable Market Expansion Phase"... HYBE Rises Over 4%

HYBE's stock price is on the rise as the company accelerates the launch of new Western-localized rookie groups following the success of Cat's Eye. Although there may be a temporary decline in profitability due to increased investment costs, it is being evaluated that, in the mid- to long-term, the company has entered a phase of expanding its total addressable market (TAM).

On this day, NH Investment & Securities maintained its buy rating on HYBE, stating, "The company is in a phase of accelerating the launch of new Western-localized rookie groups after confirming the success of Cat's Eye," and raised its target price from 3.3 million won to 3.9 million won.

Lee Hwajeong, a researcher at NH Investment & Securities, said, "With BTS scheduled to resume activities next year and the Weverse (fan communication platform) business becoming more efficient, expectations for earnings growth are rising, and investment sentiment is expected to improve."

She continued, "In the short term, there is a performance burden due to investments in new Western rookie groups, but the mid- to long-term growth potential brought by the expanding total addressable market is more attractive." "The strengthening of Cat's Eye's presence in North America as a localized girl group, along with the early establishment of a North American fandom for the new boy group CORTIS, are examples that demonstrate the company's potential to expand its total addressable market. HYBE is leading the industry's external growth," she emphasized.