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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘SKT boosted by fast-growing 11st’

  • PUBLISHED :November 22, 2018 - 10:52
  • UPDATED :November 22, 2018 - 10:52
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[THE INVESTOR] SK Telecom’s subsidiary 11Street could gain further momentum as its rival Coupang has attracted additional funding of US$2 billion, said KB Investment and Securities on Nov. 22 maintaining a “buy” recommendation and 330,000 won (US$292.32) target price. 




By transaction amount, 11Street was two times larger at 7.3 trillion won than Coupang last year. SK Telecom’s stock price, however, only reflects the online retailer’s corporate value at 2.7 trillion won. As 11Street expands in size, its profits will improve accordingly and it is likely to reach break-even point in the fourth quarter, said analyst Kim Jun-seop.

What differentiates SKT from its peers is rising expectations following the earnings improvement of non-telecom sectors. Cross-networking effect among its businesses is raising hopes that subscribers’ termination rate and cost for attracting new users would decline, said the analyst. 

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

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