 |
The Korea Exchange. (Photo = Korea Exchange) |
[Alpha Biz= Kim Jisun] Seoul, October 8 – Defense and shipbuilding stocks have seen the most target price upgrades by securities analysts this year, driven by rising defense exports and solid earnings growth amid ongoing geopolitical tensions. In contrast, secondary battery and chemical stocks experienced the most target price downgrades due to weakening industry conditions.
According to market tracker FnGuide, Hanwha Aerospace topped the list with 85 upward revisions to its target price — the most among all KOSPI and KOSDAQ-listed companies in 2024. Robust exports of its K9 self-propelled howitzers and Chunmoo multiple rocket launchers have lifted analysts’ expectations. The company also benefited from the consolidation of Hanwha Ocean into its financial statements.
Hanwha Ocean’s share price has surged 205.8% this year, while Hyundai Rotem climbed 333.8% on strong overseas demand for its K2 main battle tanks. Other frequently upgraded stocks included Hanwha Ocean (63 reports), HD Hyundai Heavy Industries (63), and APR (62).
Last year, major upgrades centered around financial holding companies such as KB Financial, Shinhan Financial, and Hana Financial Group, following the government’s “Value-Up Program.” This year, however, defense and shipbuilding have clearly taken the lead.
Semiconductor and Consumer Stocks Also Gained Attention
SK hynix ranked fifth with 58 upward revisions, marking its third consecutive year in the top 10. Analysts cited a recovery in the global semiconductor market after a prolonged downturn.
In the consumer sector, Samyang Foods — maker of the globally popular “Buldak Ramen”, which has sold over 8 billion units worldwide — also saw 60 analyst upgrades, reflecting bullish sentiment toward its sustained export performance.
In the KOSDAQ market, entertainment firms SM Entertainment (62) and YG Entertainment (57) were among the few to make the top tier, supported by strong K-pop-driven IP monetization and concert revenue growth.
Battery and Chemical Sectors Face Headwinds
Conversely, battery and chemical stocks saw the most downgrades. Samsung SDI recorded 61 target price cuts, the most among all companies, amid declining EV battery demand and expectations of a potential loss this year.
LG Energy Solution (43 reports), LG Electronics (40), POSCO Future M, and LG Chem (37 each) also suffered downward revisions as analysts grew increasingly cautious about earnings outlooks.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
