JYP Entertainment has recorded performance growth that exceeded market expectations, largely thanks to the large-scale tours and strong results of Stray Kids in Western markets.
In a report released on November 12, Lee Hyun-ji, a researcher at Eugene Investment & Securities, maintained a BUY rating on JYP Entertainment and raised the target price from 50,000 won to 55,000 won.
The analyst noted that starting in the second quarter of next year, Stray Kids will hold large-scale stadium tours in Japan, North America, and Europe. The tour is planned for a total of 46 shows, a bigger scale than the previous tour, and is expected to drive solid growth in both revenue and profitability.
Lee also pointed out that Stray Kids achieved their highest quarterly performance revenue yet, boosted by their own festival in South America and headlining appearances at overseas music festivals.
The report also mentioned the upcoming debut of the four-member rookie boy group oftheblue, scheduled for January 11 next year. With all four major entertainment companies set to debut new boy groups in the first half of next year, the analyst said that strong results from these rookies could further support growth expectations across the industry.