HYBE, to continue with downward spiral due to pause of BTS group activity

연합뉴스 / 2022-06-16 11:20:24
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▲ This file photo shows BTS goods at a restaurant (Yonhap)

 

SEOUL, June 16 (Yonhap) — Stocks of HYBE are continuing on with their downhill slope on Thursday after BTS announced to pause their group activity.

HYBE fell 2.07% to trade at 142,000 won as of 9:30 a.m. on Thursday morning on the KOSPI market. Throughout the day It fell 4.14% to trade at 139,000 won.

After the announcement by BTS Wednesday, shares of HYBE plunged 24.87% to close the market at 145,000 won. On Wednesday, the price broke through 140,000 won for the first time since its listing, recording the all-time low at 139,000 won.

According to “real bangtan team dinner” (translated title) the septet announced their plan to pause group activity by saying “even though we are taking a time off from our group activities, become bit lazy and rest a bit it is all to move forward as a group for much better days to come”

Their announcement lead security firms to lower their target prices in anticipation of decline in HYBE’s performance.

Hyundai Motor Securities lowered its target price drastically from 400,000 to 280,000.

Kim Hyun-jong, Hyundai Motor Securities researcher analyzed, “Arrangement reflects on the difficulty of BTS participating on their tours planned out for the second half of the year” adding “we have lowered the operating profit forecast from 324 billion won to 225.3 billion won.”

NH Investment and securities lowered their target price from 440,000 won to 310,000 won, researcher Lee Hwa-jung added “By taking into the consideration of the uncertainty in BTS’s group activity and macro economy, NH Investment & Securities has lowered estimates from the music performance, and the target price-earnings ratio (PER).” accordingly.

Likewise, Hana Financial Investment lowered its target price from 430,000 won to 360,000 won on Wednesday.

(This article is translated from Korean to English by Yoo Joonha)

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