[Click eStock] "KT, Target Price Lowered... Concerns Over Management Vacuum Are Excessive"

On the 17th, SK Securities lowered the target price for KT from 41,000 KRW to 41,000 KRW. The investment rating was maintained at 'Buy.'

KT is estimated to have recorded sales of 6.4205 trillion KRW and an operating profit of 482.9 billion KRW in the first quarter of this year. Compared to the same period last year, sales increased by 2.3%, but operating profit decreased by 22.9%. Despite solid growth in the wired and wireless communication sectors as well as the cloud and media sectors, operating profit is expected to fall short of market expectations due to factors such as poor performance of some subsidiaries like BC Card and increased selling expenses.

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Moreover, KT is currently experiencing a management vacuum. The appointment of a new CEO is likely to be decided around the end of the third quarter, leaving short-term uncertainty.

However, Choi Gwan-soon, a researcher at SK Securities, said, "The previous CEO's strategy has been recognized by the market in terms of performance and stock price, maintaining steady growth in the core business. The overall management direction, including the direction of new businesses and shareholder returns, is not expected to deviate significantly," adding, "The risk related to the management vacancy is somewhat exaggerated."

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