"From 140,000 Won to the 30,000-Won Range" JYP Entertainment, Once Touted by Park Jin-young as a Stock to Buy No Matter What in Three Years... 28 Target Price Downgrades [Shareholder Club]

[Financial News] JYP Entertainment, led by Park Jin-young, was found to be the stock that received the most target price downgrade reports from securities firms recently. As more reports lowered target prices amid heightened volatility in the domestic stock market, JYP Entertainment recorded 28 downgrade reports, the highest among individual stocks.
Sentiment in the broader market has also weakened. According to FnGuide on the 25th, there were 780 target price downgrade reports last month, outnumbering the 383 upgrade reports by 397. From the 1st to the 23rd of this month, downgrade reports also reached 571, exceeding the 304 upgrade reports. Over the same period, the KOSPI fell from 9,114.55 points at the close on June 22 to 5,593.56 points on the 30th of last month.
The mood was different in the first half of the year. In January, 843 target price upgrade reports far outnumbered 216 downgrade reports. In February, the gap was even wider, with 1,058 upgrades versus 115 downgrades. From March to May, monthly upgrade reports averaged around 800 to 1,000, and in June as well, 257 upgrades exceeded 107 downgrades.

Against this backdrop, the media sector, which includes JYP Entertainment, was also among the industries with the most downgrade reports. From the 1st of last month to the 23rd of this month, the media sector and the electronic equipment and devices sector each recorded 102 downgrade reports, the highest among industries. They were followed by semiconductors and related equipment with 75, pharmaceuticals with 73, construction with 65, and auto parts with 64.
Looking at individual stocks, JYP Entertainment had the most downgrade reports at 28. That was more than Hyundai Motor Company with 22, Classys and HYBE with 19 each, GS Engineering & Construction with 18, and Netmarble with 17.
Yuanta Securities Korea said JYP Entertainment's second-quarter earnings fell short of market consensus. It noted that growth among younger artists did not meet expectations and that uncertainty remains over TWICE's activities, making a near-term share price rebound difficult. Accordingly, it lowered its target price from 60,000 won to 55,000 won.
iM Securities also cut its target price for JYP Entertainment. On the 14th, it lowered the target from 80,000 won to 60,000 won, reflecting TWICE's entry into contract renewal season and Stray Kids' military enlistment schedule.

Securities firms expect Stray Kids to support earnings in the short term. After launching their fourth world tour, "RUN IT," Stray Kids also released their 10th mini album, "THIS & THAT," on the 7th of this month. Concert and merchandise sales linked to the tour are expected to contribute to an earnings recovery in the second half of the year.
However, TWICE members Jeongyeon and Chaeyoung recently ended their individual exclusive contracts with JYP Entertainment. Both said they would continue activities with TWICE, but if individual activities take up a larger share, the frequency of full-group promotions could decline compared with before. Stray Kids also has members scheduled to begin military service starting next year.
As a result, analysts say JYP Entertainment's stock recovery could lag behind the broader rebound in sentiment across the entertainment sector.

Meanwhile, as JYP Entertainment's stock has plunged, attention is being drawn again to the fact that Park Jin-young appeared on a YouTube channel three years ago and recommended buying the company's shares.
Appearing on the YouTube channel Syuka World in November 2023, Park Jin-young said, "If I had spare cash, I would definitely buy our company's stock," adding, "This is the time."
At the time, JYP Entertainment's stock was in the 90,000-won range. It was a period when TWICE was gaining real traction in the North American market and Stray Kids had reached No. 1 on the Billboard 200 chart.
Park Jin-young said, "JYP's stock may fall over the next year, but I believe in where it will be in three or five years," expressing confidence in a long-term upward trend. He currently holds 15.37% of JYP Entertainment's shares.
[email protected] Han Seung-gon Reporter