KT’s operating profit from the fourth quarter last year significantly missed market consensus, said KB Investment and Securities on Feb. 7, lowering its target price for the company’s shares to 39,000 won (US$36.12) from 40,000 won.
Operating profit came in at 134.2 billion won, 39.3 percent lower than market expectations, said analyst Kim Jun-seob, forecasting that operating profit in the first quarter would consequently decline 5.5 percent on-year to 394.2 billion won.
But the analyst noted that the pilot service of 5G technology which will be unveiled at the PyeongChang Olympics may give the company momentum, and its image as an asset stock was favorable in a fluctuating market. He maintained a “buy” recommendation for the company.
By Hwang You-mee (firstname.lastname@example.org)