PKX - POSCO: Wait For Better Entry Point

2024-02-02 23:16:49 ET

Summary

• Korean steel giant POSCO has made a successful pivot to green material business, supplying battery parts for EV leaders like LG & Samsung.
• PKX has delivered 24% & 29% return over the past 1 & 5 years despite challenging growth and earnings outlook.
• My target price of $72 means the stock appears overvalued. I advise interested investors to watch for potential correction, especially under the currently weak macro environment.

POSCO Holdings ( PKX ) is a South Korean conglomerate encompassing steel, chemicals, construction, and trade businesses. While steelmaking remains its core activity, PKX is strategically repositioning itself toward becoming a future-proof, eco-friendly materials provider. ...

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