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[Alpha Biz=(Chicago) Reporter Kim Jisun] NH Investment & Securities raised its target price to KRW 48,000 from KRW 44,000 on the 22nd, saying Hyundai Steel's product prices are expected to rise.
"Considering the cost-level roll margin (excluding the purchase price of raw materials from the price of cold-rolled products), it will be possible to raise prices of products due to rising costs if higher prices of raw materials are maintained," NH Investment & Securities Co. said in a report on Hyundai Steel.
"Despite the sluggish third-quarter earnings outlook, Hyundai Steel's stock price has risen about 20% since August," NH Investment & Securities said. "This is due to expectations of a rise in product prices due to rising raw material prices."
However, it was expected that it would be difficult to achieve short-term earnings improvement as product prices did not rise immediately.
Hyundai Steel's operating profit in the third quarter of this year is estimated to be 231 billion won, down 38 percent from a year earlier.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
