POSCO’s Neutral Rating Reiterated at Zacks (PKX)
POSCO (NYSE:PKX)‘s stock had its “neutral” rating reaffirmed by Zacks in a research report issued to clients and investors on Monday. They currently have a $87.00 price target on the stock. Zacks‘s target price would indicate a potential upside of 5.07% from the stock’s previous close.
Zacks’ analyst wrote, “POSCO’s net income more than doubled year over year in second-quarter 2014, with earnings coming in at $1.36 per ADR. Revenues grew 7.1% on the back of higher crude steel production, finished products sales and export sales. Cost of sales increased 8.3% while gross margin fell by 110 basis points (bps). Selling and administrative expenses climbed 1.9%. Liabilities-to-equity ratio fell 370 bps to 86.8%. In the third quarter, domstic steel demand is expected to be impacted by lower demand from automobile, home appliance and shipping industries. For 2014, revenue guidance has been increased marginally to KRW 64.5 trillion, while that for finished product sales and crude steel production have been trimmed. Considering all these factors, we currently maintain a Neutral recommendation on POSCO.”
Shares of POSCO (NYSE:PKX) traded up 0.17% on Monday, hitting $82.80. The stock had a trading volume of 157,415 shares. POSCO has a 52-week low of $63.71 and a 52-week high of $84.52. The stock has a 50-day moving average of $79.29 and a 200-day moving average of $73.20. The company has a market cap of $26.424 billion and a price-to-earnings ratio of 19.08.
PKX has been the subject of a number of other recent research reports. Analysts at Credit Suisse upgraded shares of POSCO from a “neutral” rating to an “outperform” rating in a research note on Tuesday, August 12th. Analysts at Bank of America initiated coverage on shares of POSCO in a research note on Wednesday, June 11th. They set a “buy” rating on the stock. Two research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. The stock has an average rating of “Buy” and a consensus target price of $87.00.
POSCO is an integrated steel producer in Korea. It produced approximately 31.7 million tons of crude steel during the year ended December 31, 2009, a substantial portion of which was produced at Pohang Works and Gwangyang Works.
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