“Our top sector pick in the Korea entertainment sector is HYBE, as we believe BTS’s comeback in 1H26 offers strong monetisation potential across core businesses recorded music, concerts, and merchandise (MD)—along with a well-diversified global artist portfolio spanning the US and Latin America,” write Hong and Kang in their Dec 10 note.
BTS is widely expected to make their comeback in 2026. The group said in a July livestream that they will release their new album next spring. In October, Bloomberg reported that the BTS is planning a 65-show world tour, with about half of the dates scheduled to take place in North America. Hybe said in a statement to the outlet that details of a new BTS world tour “remain unconfirmed.”
Nomura’s target price of KRW354,000 for Hybe is based on a target PE of 38x for their forecasted FY2026 earnings per share. Any delays to BTS’s long-awaited comeback will be a key downside risk to their target price, Hong and Kang write.
As at 11.05am local time, Hybe is trading down by 1.84% at KRW294,000. The company’s stock is up by over 52% year to date, behind the Kospi’s gain of 71% over the same period.
