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[Apha Biz=(Chicago) Reporter Paul Lee] Securities firms lowered their target stock prices on the 16th, saying that earnings uncertainty continues as E-Mart's second-quarter earnings fell short of expectations.
On the same day, KB Securities lowered its target stock price from 100,000 won to 95,000 won, saying that E-Mart's second-quarter earnings were sluggish and its operating profit estimate for this year was lowered.
KB Securities explained, "E-Mart recorded an operating loss of 53 billion won in the second quarter, widening its deficit from last year," adding, "Starbucks and Shinsegae's construction performance fell short of expectations."
"The annual operating profit estimates of Starbucks and Shinsegae Engineering & Construction have also lowered the estimate of E-Mart's operating profit this year by 23%," KB Securities said. "The fact that it is engaged in many different businesses is causing performance uncertainty."
Shinhan Investment & Securities also lowered E-Mart's target price from 100,000 won to 90,000 won.
"E-Mart's operating profit in the second quarter fell far below the consensus due to sluggish SCK Company and the construction sector. In particular, SCK Company saw its operating profit drop 23 percent due to sluggish growth at existing stores," said Shinhan Investment & Securities Co.
NH Investment & Securities also lowered E-Mart's target price from 120,000 won to 100,000 won.
In addition, eBEST Investment & Securities also lowered E-Mart's target price from 123,000 won to 91,000 won.
E-Mart shares closed at 73,500 won, down 5.41% from the previous trading day.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
