[Featured Stock] Korean Air Surges Early Trading on Strong 2Q Earnings Outlook

Korean Air is showing strong performance in early trading on the 16th, following securities firms' forecasts that the airline will post surprise earnings in the second quarter thanks to falling oil prices and demand recovery.

As of 9:16 a.m. on the day in the Korea Composite Stock Price Index (KOSPI) market, Korean Air is trading at 24,100 KRW, up 4.10% from the previous trading day.

The stock price even rose as much as 24,150 KRW, up 4.32% from the previous day, shortly after the market opened.

[Image source=Yonhap News]

Yang Ji-hwan, a researcher at Daishin Securities, evaluated, "The decline in oil prices in the second quarter reduced the estimated fuel costs by more than 100 billion KRW compared to previous estimates, and the strength of passenger demand recovery due to the endemic exceeded expectations."

Accordingly, Daishin Securities raised its operating profit estimate for Korean Air in the second quarter from 402 billion KRW to 552 billion KRW.

At the same time, it maintained a 'Buy' investment rating on Korean Air and raised the target stock price from 30,000 KRW to 33,000 KRW.

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