Brokerage firms cut KOSPI large-cap targets…top names up 8% on average

Securities firms have raised their price targets for the top large-cap stocks on the KOSPI by an average of 8%. The increase is attributed to the bull market since the beginning of the year.

Employees work in the dealing room of Hana Bank’s Myeongdong branch in central Seoul on the afternoon of Sept. 19. / Yonhap News1

From Jan. 1 to the 18th of this year, the price targets set by securities firms for the top 20 stocks by market capitalization on the bourse rose by an average of 8.4 percent, according to financial information firm F&G on Jan. 21.

This is in contrast to last year, when price targets for the largest stocks by market capitalization were revised downward as central banks around the world tightened monetary policy.

The biggest price target increase was for POSCO FutureM, which benefited from the secondary battery industry. Its price target is up 64.22%. On January 1, the brokerage’s price target for POSCO Future M was 243,900 won. As of Jan. 18, it had risen to 405,380 won. Currently, the stock price is 31,000 won.

Hyundai Motor (19.66%), Kia Motors (23.99%), and LG Electronics (29.51%), which all posted strong first-quarter results, also saw large gains.

Among the top 20 stocks by market capitalization, 11 stocks saw their price targets increase from the beginning of the year, outnumbering the decliners (9).

Among the decliners, Celltrion (KRW 239,535 → KRW 227,69) fell the most, down 7.83%, followed by Shinhan Holdings (-4.46%), Samsung Biologics (-3.51%), SK Innovation (-3.15%), Samsung C&T (-2.00%), Hyundai Mobis (-1.89%), and KB Financial (-1.77%).

Among the stocks that saw their price targets increase, Samsung Electronics is the most notable. At the beginning of this year, the price target for Samsung Electronics was KRW76,500스포츠토토, but as of Nov. 18, it was KRW81,727, up 6.83%.

The target price increase is likely due to Samsung’s announcement of a production cut early last month. At the time of its Q1 preliminary results announcement, the company said it was “adjusting memory production to a meaningful level” and changed its previous stance of “no artificial production cuts”.

In response, seven brokerage firms, including Daol Investment & Securities, Shin Young Securities, Yujin Investment & Securities, Kiwoom Securities, Hi Investment & Securities, IBK Investment & Securities, and BNK Investment & Securities, raised their price targets. Currently, the highest price target is 90,000 won from Yuanta Securities and IBK Investment & Securities, while the lowest price target is 75,000 won from Daol Investment & Securities.

Expectations for ‘70,000 won’ are also growing as Samsung Electronics closed at 68,400 won, the highest price so far this year.