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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Hana Securities raised its target price for KT (030200) from 60,000 won to 70,000 won, an increase of 16.7%, while actively recommending a buy. The firm predicts the stock price will rise by more than 40% in the near future.
Hana Securities also expressed expectations that KT would surpass SK Telecom (017670) to become the leader in market capitalization within the telecommunications sector.
"Shareholder returns are expected to see a significant increase this year, but the stock price has yet to fully reflect this," Hana Securities explained. "The outlook for KT's stock price in March is brighter than ever."
The firm further stated, "With the effects of the organizational restructuring, KT's operating profit at the headquarters is expected to reach 1.8 trillion won by 2025, and with a dividend payout ratio of 50%, total dividends are forecasted at 700 billion won."
Additionally, Hana Securities noted, "A buyback and cancellation of shares worth 250 billion won is planned this year. Considering that shareholder returns are expected to total 950 billion won, KT’s stock price has not risen enough."
According to Hana Securities, total shareholder returns for 2025 are expected to increase by 90% compared to 2023, while the stock price has only risen by 50% during the same period.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
