PKX - POSCO Holdings: Q4 Operating Profit Was Below Expectations (Rating Downgrade)
2024-02-02 15:43:27 ET
Summary
- POSCO Holdings' operating income fell by -75% in Q4 2023 on a QoQ basis, and its actual fourth quarter operating profit fell short of the consensus forecast by -44%.
- But PKX's shares could still benefit from a positive re-rating in the medium term with catalysts associated with the battery materials business and shareholder capital return.
- I downgrade my rating for POSCO Holdings from a Buy to a Hold, considering PKX's short-term outlook, potential medium-term catalysts, and its current valuations.
Elevator Pitch
I rate POSCO Holdings Inc. ( PKX ) [005490:KS] as a Hold. My earlier write-up published on August 31, 2023, was focused on PKX's share price outperformance between mid-June and end-August last year and the updated production guidance for its battery materials business....
POSCO Holdings: Q4 Operating Profit Was Below Expectations (Rating Downgrade)