On October 23, a financial analyst from Hana Financial Investment Co. revealed that YG Entertainment's goal stock price for the 3rd quarter of 2019 has risen to 31,000 KRW (Current stock price: 26,400 KRW, +6.02%).
While the investment report still advises investors to 'buy' YG Entertainment stocks, the financial analyst calculated that the agency's current revenue patterns may lead to uncertain settlements for stockholders, if the company fails to recover from setbacks in upcoming quarters.
The analyst also remarked, "Significant events such as the end of police investigations and tax audits, G-Dragon and Big Bang's return from the military, and more are less than a month away. If high potential profits such as Big Bang's comeback and TREASURE13's debut come to realization, YG Entertainment may become the company with the highest likelihood for growth in 2020."
While YGE's expected operating profits for the 3rd quarter of 2019 are expected to end up at -1,300,000,000 KRW (~1.1 million USD), activities such as Akdong Musician's album and digital sales, WINNER and BLACKPINK's year-end comebacks, and more will result in significant recovery for the agency's overall profits by the end of 2019.
Finally, the analyst stated, "The company's return as a competitor to the stock market will depend on Big Bang's decision to renew their contracts, regarding which nothing has been decided but the possibility seems probable; as well as TREASURE13's debut by at least within the 1st quarter of next year."
Well, according to Stockopedia their revenue in 2019 so far is $250 million. The stocks declining was bad and put them in a cationary situation but it's absolutely nothing out of the ordinary for any company. So I'm not surprised. Nonetheless, I'd rather wait for more than forecasts
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