Hyundai Motor Securities predicted on the 16th that SM is expected to be re-evaluated by listing its subsidiary Dear U while its artists are driving its performance around NCT in the second half of the year.
It maintained its investment opinion as "buy" and raised its target price from 74,000 won to 84,000 won.
"The rise in the target price is attributable to an 11% increase in EPS next year as it reflects increased activity in the second half of the year and improved performance of major platforms and content subsidiaries such as DearU, SM C&C and Keyeast," Hyundai Motor Securities said.
"We are expected to perform well in the third quarter due to the NCT effect and improved subsidiaries, and we believe that the rating is likely to accelerate as the listing of DearU, a high-growth platform subsidiary, is approaching," Hyundai Motor Securities said.
According to Hyundai Motor Securities, its third-quarter earnings are expected to turn into a surplus with sales of 151.5 billion won and operating profit of 12.8 billion won, up 31.7 percent from a year earlier. Album sales are expected to reach 3.3 million copies, up + 140% from a year earlier.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
