NH Investment & Securities on April 23 raised its target price for KEPCO E&C to 240,000 won from 220,000 won, citing expectations that the company will win more large nuclear power plant orders in the United States and Europe. It maintained its “buy” rating.
Analyst Lee Min-jae said investment in large nuclear plants is becoming more visible, led by the United States, and KEPCO E&C is expected to benefit as AP1000-based projects expand. He said that if “Team Korea” participates, the company is likely to secure orders centered on comprehensive design services, strengthening earnings growth momentum.
Lee said the key basis for the higher target price was an upward revision to the assumed order price for 10 large U.S. reactors. He added that, within a cooperation structure with Westinghouse, KEPCO E&C is likely to take on stable design work.
He also said Europe is showing a clearer move to expand nuclear adoption after geopolitical risks, and that additional order momentum is expected as more countries choose the AP1000.
Lee said that if “Team Korea” wins more orders across the Middle East, Europe and South Korea, and projects in additional countries materialize, the company’s order backlog could exceed forecasts. Over the medium to long term, he said, valuation could be reassessed as the nuclear market grows.
* This article has been translated by AI.
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