PKX - Posco adds to July's monster rally but Citi analyst cuts the stock to Neutral

2023-07-25 12:36:38 ET

Posco ( NYSE: PKX ) continues its huge rally partly attributable to short covering , +11.3% in Tuesday's trading and adding to its 12% surge Monday that lifted July's gains above 75%.

The Korean steelmaker reported Q2 operating income of 1.32T won (~$1B), down from the year-earlier quarter but nearly double the 705B won in Q1 and beating analyst expectations.

Posco ( PKX ) started July's moonshot by unveiling plans to spend 121T Korean won (~$93B won) through 2030 for growth in its core steel business plus electric vehicle battery materials and hydrogen.

But Posco ( PKX ) may have limited room to rise further, Citigroup analyst Sean Lee said while downgrading the stock to Neutral from Buy, anticipating volatility for the time being as retail investors with strong appetite for the EV battery theme looking for opportunities to take profits.

More on Posco:

• Financial and valuation comparison to sector peers
• Analysis: Posco: Watch Shareholder Capital Return And Investor Relations Plans
• Stock price return: Up 139% YTD, up 185% in the past 12 months

For further details see: