"Stock Falls 56% From 410,000 Won to 180,000 Won, Yet 22 Target Price Cuts: What Is Happening at Bang Si-hyuk's Company? [Shareholders' Club]"

[Financial News] Despite the full-group return of BTS, HYBE's stock price has been cut in half this year, and securities firms issued 22 target price downgrade reports over the past month.

According to FnGuide on the 28th, 22 reports lowering HYBE's target price were issued from the 1st of last month through the 27th of this month. Among listed companies, it was one of the stocks with the most downgrade reports, along with JYP Entertainment (31) and Hyundai Motor Company (30).
Driven by BTS's full-group activities, HYBE posted record quarterly results in the second quarter of this year, with consolidated sales of 1.45 trillion won and operating profit of 170.9 billion won. That marked increases of 105.5% and 159.3%, respectively, from a year earlier.
Even so, the stock closed at 180,000 won on the 28th. The share price, which once topped 400,000 won, has fallen to about half its level at the start of the year.

Analysts said concerns that the 'BTS effect' may have passed its peak were already reflected in the stock. Securities firms kept their buy ratings, but they uniformly lowered target prices.
BNK Securities lowered its target price from 460,000 won to 300,000 won, cutting its target price-to-earnings ratio from 45 times to 36 times. Lee Jong-won, a researcher at BNK Securities, said, "In addition to concerns that the second quarter may have been the earnings peak due to the heavy concentration of BTS tours, the burden has grown that, to maintain the current earnings scale even after 2027, younger artists, global IP beyond BTS, and Weverse must grow into meaningful profit contributors."
Lee added, "Given the recent governance issue, it is necessary to conservatively apply the valuation multiple, taking into account management continuity and reputational risk until a final judicial ruling is reached."
Kyobo Securities also lowered its target price from 390,000 won to 320,000 won, adjusting its target PER from 41 times to 35 times. Jang Min-ji, a researcher at Kyobo Securities, said, "There are concerns about margin pressure from the rising share of concerts, but from a medium- to long-term perspective, the possibility of improved profitability through the growth of younger artists remains valid." She added, "The current 12-month forward PER is about 20 times, near a historical low, so the current stock price is attractive from a medium- to long-term perspective."
Samsung Securities also cut its target price by 15% from 330,000 won to 280,000 won, after conservatively lowering its profitability outlook for 2026 to 2027. Choi Min-ha, a researcher at Samsung Securities, said, "We are lowering the target price by revising down our profitability outlook amid heightened short-term stock volatility, but the growth story remains intact."

The value of Bang Si-hyuk's HYBE stake has also evaporated by more than 1 trillion won. According to a survey by Korea CXO Research Institute of the stock valuation of the heads of 46 major domestic groups as of the second quarter, Bang's stock assets fell by more than 1.4 trillion won in just one quarter, the largest decline among the group leaders. His decline rate of 35.8% was also the highest among those surveyed.
Legal risks surrounding Bang also remain. Police investigations into Bang, who is accused of fraudulent and unfair trading in connection with HYBE's listing process, are reportedly in the final stages of closure. Park Jeong-bo, commissioner of the Seoul Metropolitan Police Agency, said at a press briefing on the 24th, "We have been told that it has been wrapped up," and, regarding whether a request for an arrest warrant would be filed again, "I think we will be able to let you know soon."
Police have been investigating Bang on suspicion that he deceived investors ahead of HYBE's listing and reaped about 260 billion won in illicit gains. They requested arrest warrants twice, but prosecutors rejected both, saying supplementary investigations were needed.

[email protected] Sung Min-seo Reporter