April 27, 2024

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[THE INVESTOR] Amorepacific has been slow in the second quarter, said NH Investment and Securities on July 27, lowering the target price to 360,000 won (US$320.57) from 406,000 won.

Lacking an earnings momentum both at home and overseas, its revenue in the period came in at 1.34 trillion won with operating profit of 145.8 billion won, missing market expectations. Unstable market conditions and slow earnings, however, have been amply reflected in its recent stock price decline, said analyst Han Guk-heui, maintaining a “buy” recommendation. 

The cosmetics company has drastically eased restrictions on duty-free purchase since the end of June and the change in policy is likely to lead to a better growth rate than industry average, she added. 

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