POSCO shares 'buy' opinion was maintained. POSCO's stock price seems to need a rebound in Chinese steel prices to rise.
Kiwoom Securities maintained its target price of POSCO at 440,000 won and its investment opinion at "Buy" on the 26th.
"POSCO stock prices need a rebound in China's steel prices to get out of the slump," Kiwoom Securities said. "Chinese steel prices have slowed since May this year, which is why POSCO is showing a sluggish trend despite its record-high performance in the third quarter following the second quarter of 2021.".
China is believed to have an absolute influence on the Asian steel industry. In particular, POSCO's share price rises eventually depend on Chinese steel prices as the domestic steel sector shares appear to be accompanied by Chinese steel prices.
Steel prices are expected to continue to rise in line with European power shortages.
"There is a setback in steel and non-steel production due to power shortages in Europe," Kiwoom Securities said. "Chinese steel prices are also likely to rebound at the end of this year or early next year.".
POSCO is expected to generate 75.883 trillion won in sales and 9.273 trillion won in operating profit on a consolidated basis in 2021. Sales are up 31.30% and operating profit is up 285.89% from 2020.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
