HYBE shares have surged more than 6% during trading, buoyed by analysts' recommendations for bottom fishing.
According to the Korea Exchange, as of 12:58 PM on July 7, HYBE's stock was trading at 228,000 won, up 13,000 won (6.05%) from the previous trading day. The stock opened at 213,000 won and peaked at 236,500 won during the session, before retracting some gains.
The increase in stock price is attributed to analysts suggesting that the shares, which have underperformed in the recent market rally, are undervalued, thus stimulating investor sentiment.
Lee Hwa-jung, a researcher at NH Investment & Securities, stated in a report that "second-quarter earnings are expected to exceed consensus estimates," lowering the target price to 330,000 won but maintaining a 'buy' rating.
Lee noted, "The high growth of Cortis is becoming evident, and we are focusing on the long-term growth potential from the success of Western music centered around BTS and Cat's Eye. The increase in artist distribution rates can be offset by economies of scale, which will alleviate concerns about profitability as confirmed in the second-quarter results."
Additionally, she mentioned, "The likelihood of NewJeans making a comeback has increased following their reorganization, indicating that this is a valid period for bottom fishing due to the abundance of re-evaluation factors."
* This article has been translated by AI.
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