Business · Companies · 10 hrs ago
KB Securities cuts YG Entertainment price target over costs and debut delays
KB Securities cut its YG Entertainment price target from 60,000 won to 50,000 won while keeping its buy rating.
The South Korean entertainment company’s third-quarter operating profit was 135 billion won, down 56.8% from a year earlier and below analysts’ average estimate of 199 billion won.
YG said that delayed rookie debuts and BigBang tour costs weighed on its outlook.
BigBang, BabyMonster and Treasure held concerts during the quarter, while no album releases meant recorded music contributed less.
Merchandise sales rose 44% to 40.6 billion won, but tour-related expenses increased, including costs for BigBang merchandise and early world-tour operations.
KB also cited a higher share of concerts in lower-profit locations as a cost pressure.
The price target was lowered, but the buy recommendation remains in place.
KB Securities cut its price target for YG Entertainment from 60,000 won to 50,000 won, while keeping its Buy rating.
The brokerage cited delays to new artist debuts and costs related to BigBang’s tour.
YG Entertainment’s third-quarter operating profit fell 56.8% year on year to 13.5 billion won, below the 19.9 billion won consensus estimate.
Merchandise sales rose 44% year on year to 40.6 billion won, but higher costs weighed on profit.
- Who
- KB Securities cut its price target for YG Entertainment.
- What
- It lowered the target from 60,000 won to 50,000 won and maintained its Buy rating.
- When
- The report was published on November 9, 2026; the article says KB Securities acted on November 10.
- Where
- Not stated.
- Why
- KB Securities cited delayed new artist debuts and higher BigBang tour-related costs.
This story does not have two clearly opposing sides.
BigBang, BABYMONSTER and TREASURE held 14, 19 and 8 performances, respectively.
KB Securities lowered its YG Entertainment price target from 60,000 won to 50,000 won and maintained its Buy rating.
- Price target
- Cut from 60,000 won to 50,000 won
- Investment rating
- Buy, maintained
- Third-quarter operating profit
- 13.5 billion won, down 56.8% year on year
- Consensus estimate
- 19.9 billion won
- Merchandise sales
- 40.6 billion won, up 44% year on year
1 source
What people are saying
We are lowering the multiple because of delays to new artist debut schedules and the cost burden related to BigBang’s tour
Merchandise sales increased, which is encouraging, but operating profit is disappointing as the cost burden has grown