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Research Alert: CFRA Upgrades Opinion On Shares Of Posco Holdings To Hold From Sell
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Research Alert: CFRA Upgrades Opinion On Shares Of Posco Holdings To Hold From Sell
Aug 20, 2025 4:14 AM

03:35 AM EDT, 08/20/2025 (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 lift our rating to Hold (from Sell) and 12-month target price to USD57 (from USD36), valuing the stock at 0.47x 2025 P/BV, slightly below its five-year mean of 0.50x. Our cautiously optimistic outlook reflects: (i) gradual steel price stabilization as China's H1 2025 crude steel output declined 3% Y/Y, (ii) portfolio restructuring generating KRW1 trillion cash through 56 completed projects with additional KRW1.5 trillion targeted, and (iii) strategic positioning via U.S. EAF joint venture with Hyundai Motor Group ahead of 2027 USMCA rules. We expect steel prices to recover slightly in 2025 from anti-dumping duties imposed by several countries in the South-East region for Chinese steel. However, persistent headwinds for POSCO include regional steel oversupply, depressed lithium prices at USD9-10k/ton in our estimates (vs. 2024 peak of USD15.7k/ton), and high capex commitments of KRW8.8 trillion. We raise our 2025 EPS estimate to KRW3,895 (from KRW4,429) and 2026 EPS to KRW5,842 (from KRW5,509).

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