] Posco M-Tech
has posted solid earnings and has ample growth potential, said HMC Investment Securities on May 18, suggesting a “buy” recommendation and 3,700 won (US$3.29) target price.
Revenue from steel-packing, sub-materials and consignment management divisions remains steady and the aluminum price hike boosted its operating profit, said analyst Park Hyeon-uk.
Considering the weakening price of aluminum and POSCO facilities maintenance, however, its second-quarter operating profit will stand at 3.4 billion won, estimated the analyst.
The company’s stable performance is a strength but it needs a new growth engine for its stock price, and considering the all-cash financial structure, it has ample potential, noted Park.
By Hwang You-mee (email@example.com