April 19, 2024

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[THE INVESTOR] Korean Air’s finances will stabilize following the decline in its debt-equity ratio, said Hana Financial Investment on March 16, maintaining a “buy” recommendation and 38,000 won (US$33.58) target price. 

It remains solid as the macro variables improve, and as the low oil price continues it will post close to 1 trillion won operating profit, forecast analyst Shin Min-seok, adding that as the won-dollar exchanges rate declines, the carrier could gain largely from foreign currency translation this quarter.

The payment for 450 billion won capital raise has been completed and its debt-equity ratio will fall to 700 percent. The recovery will lead to reevaluation of its stock price, said the analyst. 

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