April 19, 2024

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[THE INVESTOR] SK Networks has finished adjusting its business portfolio which will boost its earnings, said Samsung Securities on Feb. 7, raising the target price to 9,200 won (US$8.09) from 8,300 won. 

It has graduated from a fashion and duty-free businesses by acquiring SK Magic, from which investors can expect to see increased rental accounts and structural changes in the car rental sector, said analyst Baek Jae-seung.

The portfolio modification will ease the uncertainties and home appliances and car rental sectors are expected to serve as growth engines, according to the analyst.

Cape Investment and Securities agreed on the brighter outlook for the company, saying that all of its 103 billion won losses have been reflected in the fourth quarter last year and from now on it will accelerate improving the remaining businesses including IT technologies, gas stations, trade and hotels.

The rental sector in particular will grow significantly this year, and will replace trade as its flagship business, said analyst Kim Tae-hyeon, maintaining a “buy” recommendation and 12,000 won target price.

By Hwang You-mee (glamazon@heraldcorp.com)