Kakao Bank's stock price is 'depressed' despite its best performance in the first quarter...  Target price lowered one after another
News
gla_wpadmin  

Kakao Bank’s stock price is ‘depressed’ despite its best performance in the first quarter… Target price lowered one after another

Even though Kakao Bank achieved record-high operating profit in the first quarter of this year, its share price is still sluggish. As a result, each brokerage is lowering its target price.

According to FnGuide, a financial information company on the 8th, the average target price of Kakao Bank suggested by securities companies was 54,200 won as of the 6th. This is 4.07% lower than the target price on April 6th (56,500 won).

Previously, Kakao Bank recorded 88.4 billion won in operating profit in the first quarter of this year, up 63.8 percent from a year earlier, and 66.8 billion won in net profit, up 20.1 percent. In the case of operating profit, the quarter achieved an all-time high. However, the share price, which was in the 50,000 won range at the beginning of this year, has been pushed back to the 40,000 won range because the earnings did not meet the market expectations. On the 6th, the stock price of Kakao Bank closed at 40,100 won. As of 1:45 p.m. on the 9th, the stock price of Kakao Bank stood at 41,000 won, still hovering around 40,000 won.

Securities companies are lowering the target price of Kakao Bank one after another. Kyobo Securities fell 6.7 percent from 59,000 won to 55,000 won. Kiwoom Securities lowered it by 14% from 57,000 won to 49,000 won. Meritz Securities lowered its eye level by 9.4% from 53,000 won to 48,000 won. Meritz Securities also presented a conservative ‘Hold’ rating.

Securities analysts evaluated that ‘loan growth rate’ was the most important for Kakao Bank to take a step forward. Eun Kyung-wan, a researcher at Meritz Securities, said, “Kakao Bank’s net interest margin (NIM) improved significantly in the first quarter, but loan growth was sluggish and the loan loss ratio rose.” “The loan growth rate is the most important for Kakao Bank,” he said.

Seo Young-soo, a researcher at Kiwoom Securities, said, “The new government’s financial policy is also expected to maintain the existing policy for the time being. “Considering this, the profit growth rate may be slightly lower than initially expected,” he added.

[황지수 인턴기자]

[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]

Reference-www.mk.co.kr

Leave A Comment