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Samsung Securities Maintains 'Buy' on SM Entertainment, Citing Structural Growth
Consumer Services · Movies/Entertainment · yonhap_finance · 2026-09-07
041510
Samsung Securities keeps a 'Buy' rating on SM Entertainment, highlighting the company's robust earnings potential driven by new artist IP and China expansion.
What Happened
Investment Outlook: Samsung Securities has maintained its 'Buy' rating and 105,000 KRW price target for SM Entertainment, advising investors to focus on the company's structural earnings growth rather than short-term volatility. The successful market penetration of next-generation artists is diversifying the company's portfolio.
China Expansion: The establishment of a joint venture, 'STE,' with Tencent Music Entertainment (TME) is set to accelerate SM's growth in the Greater China region. By leveraging TME's local infrastructure, SM expects to expand its artists' reach and enhance the influence of its intellectual property.
Fundamental Strength: SM is seeing consistent performance in its merchandise and licensing businesses, alongside improved profitability from key subsidiaries. These factors serve as clear evidence of a strengthening corporate foundation.
Long-term Growth: Despite high base effects in the second half of the year, the company's structural growth trajectory remains intact. Analysts project that by 2027, SM's consolidated revenue and operating profit will increase by 9.7% and 18.1%, respectively.