[THE INVESTOR] Although POSCO is facing deterioration following trade conflicts between the US and China, its stock price fall has been excessive, said Korea Investment and Securities on Dec. 3 maintaining a “buy” recommendation while lowering the target price to 410,000 won (US$367.48) from 460,000 won.
Conflicts between the two countries are weighing heavily on the industry. Having remained steady until the third quarter, steel products prices are declining sharply. The price fall for POSCO, however, has been excessive. Although the industry is showing signs of a slowdown, a global economic crisis is not likely. The steel market has significantly improved from China’s industrial restructuring, said analyst Choi Mun-seon.
It will take more time for investor sentiment to recover in the short time but the steel maker’s price-to-book ratio has fallen down to 0.4 times while its annual dividend rate is over 4 percent, said the analyst.
By Hwang You-mee (email@example.com)