Goldman Sachs initiates YG Entertainment stock with Neutral rating

Published 04/06/2025, 11:16
Goldman Sachs initiates YG Entertainment stock with Neutral rating

On Wednesday, Goldman Sachs analysts began coverage of YG Entertainment Inc (KQ:122870:KS) with a Neutral rating and set a price target of KRW80,000. The firm recognized YG Entertainment as a significant player in the K-pop industry, housing major acts such as Blackpink.

The analysts noted that YG Entertainment experienced moderate activity levels in 2024, largely due to the absence of group activities from Blackpink. However, they anticipate a return to positive growth in 2025, driven by Blackpink’s comeback and the rapid growth of new group Babymonster.

Despite expressing optimism about YG Entertainment’s long-term strategy to expand its artist portfolio and improve monetization per artist, Goldman Sachs analysts expect these initiatives to require time. They highlighted that Blackpink’s activity cycles continue to cause fluctuations in earnings.

The stock of YG Entertainment has already seen a substantial increase, surging 140% from its lowest point in September 2024. This rise is attributed to Babymonster’s successful launch and the announcement of Blackpink’s official return.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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