April 25, 2024

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[THE INVESTOR] POSCO has managed to beat market consensus in the second quarter and will remain firm on the back of automobile steel sheet price rise, said KB Investment and Securities on July 21, maintaining a “buy” recommendation and raising the target price to 380,000 won (US$338.71) from 320,000 won.

Its revenue rose 16.2 percent to 14.94 trillion won and operating profit by 44.2 percent to 979.1 billion won. Its profitability will improve further in the second half following the price hike of steel sheets to Hyundai Motor Group, estimated analyst Lee Jae-won.

Samsung Securities agreed that it will take a favorable turn as supply and demand are balanced after five years, raising the target price to 415,000 won from 380,000 won.

Anticipations for steel sheet business will grow further as demand from China improves, said analyst Baek Je-seung. 

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