[Infostock Daily= Reporter An Hoe Hyun] Meritz Securities raised Woori Financial Group's target stock price to 13,000 won and maintained its investment opinions Buy on the 20th, saying it is expected to have a interest rate leverage effect from a interest rate hike.
"Relative stock prices worsened in 2020 due to 2nd·4th-quarter earnings shocks, low capital ratios and weak non-bank profit contributions, and the weakened competitiveness of the non-interest sector due to the Lime and DLF crisis also had a negative impact on investor sentiment," the company explained.
However, it was analyzed that, "The profit improvement in 2021 will be the highest in commercial banks due to poor performance in 2020."
"As the key to the current rise in bank stocks is interest rates, we should pay attention to stocks with higher interest rate leverage rather than the capital ratio," the company explained, adding, "This is a time when the advantages of Woori Bank's low valuation and bank-centered profit structure can be highlighted."
Reporter An Hoe Hyun ahh@infostock.co.kr
