[Click eStock] "POSCO, Economic Recovery Expectations to Lead Stock Price Increase"

[Asia Economy Reporter Eunmo Koo] NH Investment & Securities expects POSCO to continue its earnings recovery and stock price rebound next year amid growing expectations of a global economic recovery. Considering the increase in profits, the company forecasted a dividend per share of 9,000 KRW for 2021. The investment rating was maintained at 'Buy,' and the target stock price was raised to 325,000 KRW.

NH Investment & Securities estimated POSCO's consolidated sales for next year to be 57.6422 trillion KRW, a 1.2% increase from this year, operating profit to be 3.5277 trillion KRW, up 45.6%, and net income attributable to controlling shareholders to rise 39.1% to 2.1303 trillion KRW.

In a report on the 2nd, researcher Byun Jongman of NH Investment & Securities stated, "Earnings are expected to increase as the impact of the COVID-19 virus, which was concentrated in the second quarter, subsides, and expectations for economic recovery will also be reflected in the stock price," adding, "With the increase in profits, the dividend per share next year is expected to rise to 9,000 KRW."

Amid heightened expectations for economic recovery, POSCO is evaluated to be responding to changes in industrial demand. Researcher Byun explained, "Although the COVID-19 pandemic continues, there are high expectations for the development of vaccines and treatments next year and an increase in steel demand," and added, "China's manufacturing PMI in November this year recorded 52.1, maintaining expansion for nine consecutive months, and the World Steel Association (WSA) forecasts that global nominal steel demand will increase by 4.1% in 2021 compared to the previous year."

This content was produced with the assistance of AI translation services.