Posco Future M Could Post Earnings Miss Through 2H
Dow Jones10-01 12:35
0435 GMT - Posco Future M could post earnings below market expectations through 2H, Nomura's Cindy Park and Dongmin Lee say. Weaker lithium prices, along with the won's strength against the dollar, are weighing on the South Korean battery-material producer, the analysts write in a note. The company's cathode business is likely to post only a marginal operating profit, with shipments flat this year, implying plant utilization below 30%, they say. A correction in lithium prices to $20,000 a ton from $24,000 in August could pressure average selling prices in 4Q, they add. Nomura trims its target price on the stock to 190,000 won from 200,000 won and keeps a neutral rating. Shares are 1.1% higher at 180,700 won.
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