SM Entertainment Could Post Softer Earnings in Coming Years -- Market Talk

Dow Jones01-23

0137 GMT - SM Entertainment could post softer earnings in the coming years, Joon Lee and Thomas Y. Kwon write in a note. The K-pop powerhouse could face a steeper-than-expected decline in revenue from veteran artist groups, as well as slower-than-expected fandom growth of newer groups, the analysts say. They lower their 2025-2027 EPS estimates for SM by 5%-11%. They are skeptical of SM's new strategy of prioritizing near-term earnings over long-term growth while cautiously expanding into new regions. "We are unsure of this direction when SM's competitors are rapidly escalating their global presence by replicating their expertise in larger and faster-growing target markets," they add. Daiwa downgrades the stock to hold from outperform and cuts its target price by 16% to KRW107,000. Shares are 0.3% higher at KRW108,400. (kwanwoo.jun@wsj.com)

(END) Dow Jones Newswires

January 22, 2026 20:37 ET (01:37 GMT)

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They are skeptical of SM's new strategy of prioritizing near-term earnings over long-term growth while cautiously expanding into new regions. \"We are unsure of this direction when SM's competitors are rapidly escalating their global presence by replicating their expertise in larger and faster-growing target markets,\" they add. Daiwa downgrades the stock to hold from outperform and cuts its target price by 16% to KRW107,000. Shares are 0.3% higher at KRW108,400. 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Kwon write in a note. The <a href=\"https://laohu8.com/S/TKKD.SI\">K</a>-pop powerhouse could face a steeper-than-expected decline in revenue from veteran artist groups, as well as slower-than-expected fandom growth of newer groups, the analysts say. They lower their 2025-2027 EPS estimates for SM by 5%-11%. They are skeptical of SM's new strategy of prioritizing near-term earnings over long-term growth while cautiously expanding into new regions. \"We are unsure of this direction when SM's competitors are rapidly escalating their global presence by replicating their expertise in larger and faster-growing target markets,\" they add. Daiwa downgrades the stock to hold from outperform and cuts its target price by 16% to KRW107,000. Shares are 0.3% higher at KRW108,400. (kwanwoo.jun@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  January 22, 2026 20:37 ET (01:37 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"POST","symbol_name":"Post Holdings","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2605444183","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2605444183","pubTimestamp":1769132220,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0137 GMT - SM Entertainment could post softer earnings in the coming years, Joon Lee and Thomas Y. 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