[Infostock Daily= Reporter An Hoe Hyun] DB Financial Investment predicted on the 26th that POSCO will continue to improve its performance until the 4th quarter. The decision is based on the judgment that consumption of steel materials will increase as economic stimulus measures from various countries expand. In response, the investment opinion was raised to 'Buy' and the target stock price was raised to 275,000 won, 19.5%(45,000 won) higher than before.
POSCO announced on the 23rd that consolidated sales and operating profit in the 3rd quarter of this year fell 10.8% and 35.9% year-on-year to 14.2612 trillion won and 667 billion won, respectively.
As the proportion of high-end steel increases in the 4th quarter, the steel sector is expected to continue to improve its performance. This is because the rise in steel raw material prices has been reflected in earnings since the middle of the 4th quarter, while product price hikes have been in full swing since the middle of the 3rd quarter.
Meanwhile, POSCO's sales and operating profit for this year, which was expected by DB Financial Investment, was 56.898 trillion won and 2.229 trillion won, down 11.6% and 42.4% from last year.
Reporter An Hoe Hyun ahh@infostock.co.kr
