CJ ENM stock: NH Investment cuts target to KRW 44,000

NH Investment & Securities kept its Buy rating on CJ ENM but cut its target from KRW 47,000 to KRW 44,000 on October 12, 2026. The change reflects investment costs for new businesses and shifts in peer valuations, according to Financial News.

One-off costs reshape estimates

Analyst Lee Hwa-jung estimated third-quarter revenue at KRW 1.2 trillion and an operating loss of KRW 161.4 billion. Excluding assumed compensation costs of KRW 195.3 billion linked to the TVING personal information leak, operating profit was forecast at KRW 33.9 billion, broadly in line with market expectations.

The report said sizable operating losses remained possible in the third and fourth quarters because of one-off costs. It also argued that the medium- to long-term profitability outlook remains intact as selected new businesses move from investment toward recovery.

Music and commerce in focus

Music operating profit was forecast to rise 165 percent year over year to KRW 5 billion, supported by intellectual property activity around LAPONE as well as investment in new IP and Mnet Plus original content. Commerce operating profit was estimated to increase 80 percent to KRW 22.7 billion, with mobile live commerce supporting sales despite higher promotional spending.

Strong deliveries from the Film Business Division and Studios were expected to cushion weaker deliveries from Fifth Season. The analyst said operating leverage could improve as TVING, music and mobile live commerce advance into their payback phases, although early-stage investments could keep quarterly earnings volatile.

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