Report Downgrades on 'Samcheonpi' Collapse... Highest Target Price Cuts This Year

[Asia Economy Reporter Park Jihwan] Recently, as the KOSPI index fell below 'Samcheonpi' (3,000 points), the proportion of securities firm reports lowering the target prices of listed companies has significantly increased, reaching the highest level so far this year. The target price refers to the stock price level that a company is expected to reach in one year or within 3 to 6 months.

According to financial information provider FnGuide on the 11th, during the month of September, the number of reports lowering target prices was 79, while the number of reports raising target prices was 136. The ratio of downward adjustment reports to upward adjustment reports was 58.1%, the highest level recorded this year.

This is slightly higher than the previous month's 56.7%, marking the highest monthly level so far this year. This ratio was only 5.1% in January but has sharply increased since the second half of the year, with 31.2% in July and 56.7% in August. As the KOSPI has declined for three consecutive months on a monthly basis since July, the gap between target prices and current stock prices has widened, leading to a series of target price adjustments.

By stock, the company with the most reports raising target prices last month was Ecopro BM (8 reports). Following were Lotte Fine Chemical (4), SKC (4), Hansol Chemical (4), Halla (4), and Korea Gas Corporation (4).

On the other hand, companies with many downward adjustment reports last month included NCSoft (7), SK Hynix (4), Samsung Electronics (4), Kakao (4), Amorepacific (4), LG Electronics (4), and LG Display (4).

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