Even in a Bear Market, Targets Were Exceeded... A Look at Stocks with Missed Price Targets in the Securities Industry

Kakao Pay, Kakao Bank, etc.
Target Prices Exceed Average by Over 30%

[Asia Economy Reporter Kwon Jaehee] As the global interest rate hikes and tightening policies have continued this year, leading the stock market downward, some stocks have stood out by surpassing their target prices set by securities firms. Since securities companies set target prices based on companies' announced earnings or future profit estimates, it is unusual for the target price to be lower than the current stock price. However, some voices caution that since there is no change in corporate value and the price increase is due to temporary supply and demand factors, chasing these stocks should be avoided.

According to financial information provider FnGuide on the 18th, the stocks with the largest gap between current price and target price are Kakao Pay and Kakao Bank. This month, the average target price from three firms (Kyobo, Shinhan, Samsung) that published Kakao Pay stock reports is about 43,000 KRW. Kyobo Securities set a target price of 60,000 KRW, Shinhan Investment Corp. 40,000 KRW, and Samsung Securities 30,000 KRW. However, the current price of Kakao Pay (as of the closing price on the 17th) is 64,700 KRW, resulting in a gap of about 30%.

Kakao Bank is similar. Seven securities firms (Shinhan, Hanwha, DS, Daishin, Hana, KB, Samsung) published Kakao Bank stock reports this month, setting target prices ranging from 15,000 KRW to a maximum of 27,000 KRW. Samsung Securities set the lowest target price at 15,000 KRW, while Daishin Securities set the highest at 27,000 KRW. The current price of Kakao Bank (as of the closing price on the 17th) is 28,250 KRW.

Other stocks with current prices higher than target prices include Hyundai Doosan Infracore (7,580 KRW as of the 17th closing), SK Bioscience (96,600 KRW), and Hyosung TNC (352,500 KRW).

Regarding the phenomenon of current prices exceeding target prices, some point out that since corporate value has not changed and the price increase is due to temporary supply and demand factors, it is difficult to view this as a trend reversal. Given the recent sharp rise in stock prices and valuation, it is advised to refrain from chasing purchases.

A securities industry official said, "The fact that prices are forming above target prices itself is a signal of overheating," adding, "If investment opinions have not changed to an upgrade, additional purchases should be avoided."

Yang Haejung, head of the investment strategy team at DS Investment & Securities, analyzed, "The recent sharp rise in some stocks is the result of temporary concentrated demand," and "Since corporate value and profit levels have not changed, securities firms find it difficult to raise target prices even if stock prices rise."

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