Nomura Raises KOSPI Target to 10,000-11,000 Points

Deep News05-21 10:10

Nomura Securities has raised its 2026 target for the Korea Composite Stock Price Index (KOSPI) to a range of 10,000 to 11,000 points, citing anticipated profit growth driven by a memory super cycle. The previous target range was 7,500 to 8,000 points. The upper end of the new target, 11,000 points, represents a 53% increase from the KOSPI's closing price on Wednesday.

Analysts at Nomura stated that AI-driven earnings from sectors such as memory, power equipment, energy storage systems, and nuclear energy are expected to deliver sustainable returns on equity over the next five years.

A shift among listed companies toward higher capital efficiency, improved shareholder returns, and optimal leverage ratios is projected to support valuation increases based on price-to-earnings and price-to-book ratios.

Proactive management strategies and shareholder activism, alongside government enforcement measures aimed at enhancing target ROE disclosures and corporate governance standards, are also seen as factors that will contribute to the KOSPI's advancement.

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