01:40 AM EDT, 04/29/2024 (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 lower our target price to USD77 from USD80, implying 2025 P/BV of 0.6x, or 26% below its peers' average P/BV. POSCO's Q1 2024 earnings were above our expectations with net profit narrowing by -26% to KRW619 bln and revenue -7% to KRW18 tln. Operating profit (OP) fell -17% to KRW583 bln mainly due to POSCO International (-5% to KRW266 bln ex-eliminations, on lower gas sales volume), POSCO E&C (-38% to KRW34 bln on higher fixed cost and weak regional demand), and the battery segment (-40% to KRW6 bln). The core steel segment registered flat OP (KRW339 bln) with pressure from lower ASP (-2%) offset by lower input costs (iron ore, coking coal). We revise our 2024-2025 EPS estimates to KRW7,888 (from KRW7,301) and KRW9,576 (from KRW9,135), mainly on higher margin assumptions. We stay neutral on the stock given the weak outlook for both steel demand (high interest rate environment, weak China property market) and battery material prices.