09:00 AM EDT, 05/13/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our forecasts unchanged for KEP as we expect better quarters ahead. Our 12-month target price stays at USD10, or at at 0.42x P/BV 2024 and a premium to its five-year average of 0.3x. We believe this is fair given KEP's projected earnings recovery. We believe higher tariffs, an economic recovery led by the semiconductor cycle, higher nuclear utilization, self-rescue efforts and lower Y/Y fuel costs (Dec. 2023-Feb. 2024 actual fuel prices -36% on a weighted basis) will lead to a turnaround in profits for KEP. In Q1 2024, revenue +8%, on higher tariffs and stronger volumes. At the operating level, KEP posted only its third operating profit since Q1 2021, at KRW1.3 trillion (Q1 2023: -KRW6.18 trillion operating loss), albeit this was a 32% decline sequentially. For Q2 2024, the government announced the fuel cost adjusted charge would remain at KRW5/kWh despite lower actual fuel costs, which would boost margin in Q2, in our view.