[Click eStock] "CS Wind, Risk Priced into Stock... Target Price Down"

Target Price Revised Downward by 14% Compared to Previous Level

On the 2nd, NH Investment & Securities downgraded the target price of CS Wind from 73,000 KRW to 63,000 KRW, stating that the stock price risk has already been priced in. The investment rating was maintained as 'Buy.'

Researcher Jeong Yeonseung of NH Investment & Securities explained, "The changes in earnings estimates are limited, and the target price downgrade reflects the decline in stock prices of global wind turbine companies."

The stock prices of global wind companies fell due to concerns over reduced offshore wind demand amid policy uncertainty following the U.S. presidential election and the potential elimination or reduction of subsidies related to the Advanced Manufacturing Production Credit (AMPC). Researcher Jeong said, "Even excluding the AMPC-related subsidies (approximately 130 billion KRW annually), CS Wind is expected to generate an annual operating profit of 200 billion KRW and a net profit of 100 billion KRW by 2026." He added, "Considering the current stock price excluding the AMPC subsidies, the price-to-earnings ratio (PER) based on 2026 estimates has fallen to about 17 times. Although policy uncertainty continues, the stock price has partially priced in the elimination of AMPC subsidies, making it a time to consider a rebound."

Regarding tariff risks, the opinion is that they are limited. Researcher Jeong stated, "Concerns such as the suspension of some offshore wind developer projects after Trump's election and the risk highlighted by the cutting of subsea cables in the North Sea are factors to watch. However, as of the end of Q3 2024, CS Wind has secured a backlog of $540 million in substructure orders and recently won additional U.S.-bound projects in early November." He continued, "From 2026, external growth is possible, and since the factory is located in the U.S., there is no tariff risk; rather, there is an opportunity to increase product prices."

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