Cosmax is experiencing strong gains in early trading, buoyed by expectations of robust third-quarter earnings and a series of upgraded price targets from analysts.
As of 10:29 a.m. on October 7, Cosmax shares were trading at 305,500 won, up 2.52% (7,500 won) from the previous trading day. At one point, the stock rose to 320,000 won, marking a 7.38% increase.
Analysts predict that Cosmax's third-quarter performance will exceed market expectations, improving investor sentiment. On this day, several brokerage firms raised their earnings estimates for Cosmax and subsequently adjusted their price targets upward.
Park Jong-dae, an analyst at Hana Financial Investment, stated, "Cosmax has surpassed seasonal trends," forecasting that the company's consolidated operating profit for the third quarter will significantly exceed market expectations. He noted that domestic sales are expected to increase by 45% year-on-year, while revenues from its subsidiaries in China and the United States are projected to rise by 25% and 70%, respectively, contributing to improved performance.
In response, Hana Financial Investment raised its earnings estimates and adjusted its target price from 305,000 won to 380,000 won, maintaining a 'buy' rating.
Other firms, including Daol Investment & Securities, Kyobo Securities, Hyundai Motor Securities, Shinhan Investment Corp., NH Investment & Securities, SK Securities, and Meritz Securities, also raised their price targets for Cosmax on the same day. Analysts believe that the rapid growth of the domestic subsidiary significantly increases the likelihood that the third-quarter operating profit will surpass market forecasts.
In particular, Kwon Woo-jung, an analyst at Kyobo Securities, raised the target price from 310,000 won to 410,000 won, analyzing that "it has been confirmed that we have entered a structural acceleration phase compared to the past."
* This article has been translated by AI.
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