SM Entertainment's Intellectual-Property Growth Path Likely Upbeat -- Market Talk

Dow Jones
05/08

0923 GMT - SM Entertainment's intellectual-property growth path is likely to remain upbeat, says CGS International's Jiwoo Oh in a note. She cites the South Korean entertainment company's girl band Hearts2Hearts as a new revenue growth driver, given the band's global reach has expanded rapidly since a February song release. Hearts2Hearts's broader streaming statistics support a growing fan base and should boost the IP's monetization opportunities, such as concert tours and merchandise sales, Oh says. Still, the company's narrower 1Q operating-profit margin likely signals softer profitability, leading to the analyst trimming her 2026-2027 earnings-per-share estimates by 0.7%-6.9%. CGSI cuts its target price to 130,000 won from 160,000 won, but retains its add rating as downside risks are likely priced in. Shares last closed at 92,200 won. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

May 08, 2026 05:23 ET (09:23 GMT)

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