"Korean Air Target Price 36,000 Won... True Reopening Beneficiary Stock"

[Asia Economy Reporter Park So-yeon] Samsung Securities maintained a buy rating and a target price of 36,000 KRW for Korean Air.

According to FN Guide on the 3rd, Samsung Securities recently released a report on Korean Air stating, "Despite rising oil prices and exchange rates, we are revising our 2022 sales estimate upward by 13% to 10.4 trillion KRW due to continued strong cargo demand." The net profit estimate was also significantly raised from 288.8 billion KRW to 811.7 billion KRW.

Kim Young-ho, a researcher at Samsung Securities, said, "Looking at the Ministry of Foreign Affairs' measures regarding inbound travelers worldwide, currently 172 countries have implemented entry bans or strengthened procedures for Koreans," adding, "The key to reopening expectations is the recovery of international passengers, which requires a prior decrease in domestic COVID-19 cases and agreements with governments of various countries to lift travel restrictions."

Researcher Kim Young-ho noted, "Reopening of popular travel destinations for Koreans such as Japan and China is important, but if the easing of regulations with neighboring countries is delayed, the load factor improvement of large airlines, which focus on short-haul routes, may accelerate, causing a concentration effect rather than low-cost carriers."

Kim emphasized, "While low-cost carriers show slow fundamental improvements due to gradual passenger demand recovery, Korean Air is expected to defend its performance through the cargo sector," calling it "the true beneficiary of reopening."