[Click eStock] "POSCO, Industry Slump and Dual Listing... Target Price Down"

NH Investment & Securities evaluated POSCO Holdings as unfavorable to profits due to the continued downturn in the steel industry and the sharp rise in exchange rates on the 6th. Accordingly, they maintained a 'Buy' investment rating but lowered the target price to 390,000 KRW.

Lee Jae-kwang, a researcher at NH Investment & Securities, stated, "Amid concerns over weakened steel demand due to Trump's tariff war and the sharp rise in exchange rates triggered by the declaration of martial law, we have revised downward the profit estimates for the steel sector," adding, "We also reflected the stock price decline of the overlapping listed subsidiary."

However, since steel demand improvement is expected due to future economic stimulus in China, the investment rating was maintained as 'Buy.' The researcher analyzed, "If China's steel demand improves, it will lead to a reduction in China's steel exports, which will act as a factor driving steel price increases."

He continued, "Although strong recovery signals for China's steel demand have not yet appeared, it is noteworthy that in November 2024, China's real estate sales area rose (+3.2%) for the first time since June 2021."

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