NH Investment cuts POSCO Holdings target price by 8.9% as lithium and steel recovery slows
NH Investment & Securities lowered its target price for POSCO Holdings to 410,000 won, an 8.9% reduction from the prior 450,000 won, citing weaker lithium prices and slower steel price hikes. The brokerage also trimmed its 2027 operating‑profit forecast by 10.5% to 3.791 trillion won. POSCO reported third‑quarter operating profit of 945 billion won, but analysts expect fourth‑quarter profit to fall to about 511.3 billion won, a 45.9% decline from the prior quarter.
Why it matters
The target‑price cut and profit‑forecast reduction prompted a sell‑off in POSCO shares, with the stock dropping over 4% on the day of the announcement. Investors now face a lower near‑term earnings outlook and a weaker valuation basis.
Key facts
- 1NH Investment & Securities cut the target price by 8.9% to 410,000 won from 450,000 won. en.fnnews.com
- 2The brokerage lowered its 2027 operating‑profit estimate by 10.5% to 3.791 trillion won from 4.235 trillion won. en.fnnews.com
- 3POSCO Holdings' consolidated operating profit for Q3 rose 15.4% quarter‑on‑quarter to 945 billion won. en.fnnews.com
- 4NH Investment & Securities forecast Q4 operating profit at 511.3 billion won, down 45.9% from the prior quarter. en.fnnews.com
- 5POSCO shares fell 4.06% to 271,500 won after the target‑price cut. en.fnnews.com
- 6POSCO stock fell 6.4% to 265,000 won, reaching a 52‑week low, after the downgrade. investing.com
Open questions
- Share‑price decline reported as 4.06% versus 6.4%.
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.