Sangsangin Securities on October 2 raised its target price for YG Entertainment to 63,000 won, citing the ongoing growth momentum of Baby Monster, while maintaining a 'buy' rating.
In a report released that day, analyst Lee Nara stated, "Baby Monster has quickly entered the revenue-generating stage among the top girl groups of the fifth generation, and the expansion of concert scale in 2026 is confirming the growth of its fandom."
Lee added, "In 2027, album sales from Big Bang are expected to contribute to performance, alongside additional concerts for Baby Monster and the debut of a new boy group, which will likely expand the activities of lower-tier intellectual properties (IP). The rise of Baby Monster and the addition of new IPs are expected to complement the company's limited IP pool while strengthening growth momentum focused on lower-tier properties."
The analyst also noted, "Reflecting the additional schedule for Baby Monster's second world tour, we have raised our revenue estimate for YG Entertainment in 2027 to 578.6 billion won, anticipating approximately 350,000 additional attendees as concert locations expand to Europe, North America, and South America."
Furthermore, Lee mentioned, "There remains potential for upward adjustments to revenue estimates for the first half of next year, depending on additional schedules and concert venue sizes. The increase in concert attendance, combined with expanded sales through local pop-ups, is expected to drive growth in merchandise sales as well."
* This article has been translated by AI.
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