KB Securities raised the target price to 35,000 on Yonwoo and maintained its investment opinion of 'Buy'.
The securities forecasted, "Yonwoo's stock price will move higher as it is expected to have improved earnings and profitability. The market environment, which had worsened due to the COVID-19 crisis, will improve, and efforts to improve the cost ratio will be effective, achieving an operating profit ratio of 8% this year."
The securities noted, "Yonwoo's first-quarter operating profit will far exceed market forecasts. This positive earnings forecast will grow further due to increased production efficiency and cost-saving effects. As business conditions at home and abroad are improving and orders from top customers are strong, Yeonwoo has a cost structure to quickly normalize profitability at a time when sales are recovering."
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
