Korea Electric Power Corporation, Significant Change in Investment Sentiment...Target Price 30,000 → 38,000 -LS Securities

[Financial News] LS Securities raised the target stock price of Korea Electric Power Corporation from 30,000 won to 38,000 won. They believe there is a high possibility of a change in investment sentiment following government policies after the presidential election. The investment opinion remains 'buy'.
On the 27th, Seong Jong-hwa, a researcher at LS Securities, stated, "Korea Electric Power Corporation has recovered its operating profit structure from the third quarter of 2023, and after building a stable sales growth trend through intermittent but steady rate increases, it has continued to stabilize operating costs through energy price stabilization and improvement in the power generation mix."
However, even after confirming the significant growth in operating profit in the first quarter of 2024, Korea Electric Power Corporation's stock price itself has always been undervalued. Researcher Seong explained, "The public opinion on Korea Electric Power Corporation has always been focused on resolving accumulated deficits and the need for sufficient rate increases, and the disappointment in this regard has acted as a factor for multiple discounts from the 'realistic target price' perspective for more than two years."
However, with the detection of signals indicating a change in the overall investment sentiment direction regarding the future direction of Korea Electric Power Corporation, the direction of national policies related to power and grid operation after the presidential election, the factors for multiple discounts have disappeared.
He said, "Despite no new changes in performance forecasts or fundamentals, the stock price is showing a strong and solid upward trend, gradually resolving the multiple discount factors from the 'target price' perspective," adding, "The trigger for the stock price rise was the relative value as a defensive stock during the market adjustment period due to the noise of tariff policy uncertainty under the Trump administration, but even after the tariff noise subsided, the continued strong upward trend is believed to be due to changes in public opinion and investment sentiment."



nodelay@fnnews.com Park Ji-yeon Reporter