[Click eStock] "Korean Air, Quick Rebound Possible with Stable Exchange Rates and Oil Prices"

Daishin Securities forecasted on the 19th that Korea Air's stock price could rebound quickly once macro variables such as exchange rates and oil prices stabilize. They maintained a 'Buy' investment rating and a target price of 30,000 KRW.

[Image source=Yonhap News]

Yang Ji-hwan, a researcher at Daishin Securities, projected that Korea Air's sales in the first quarter of this year would increase by 16.9% year-on-year to 4.2 trillion KRW, and operating profit for the same period would rise by 10.1% to 534.6 billion KRW.

Researcher Yang stated, "Robust international passenger demand is being maintained, and the volume of air transport is increasing due to a rise in direct purchase shipments from China to the Americas," adding, "Additionally, the consolidated subsidiary Jin Air is expected to post surprising earnings."

He continued, "Investment sentiment toward airlines has deteriorated due to rising oil prices caused by the Middle East conflict and the weakening of the Korean won," but added, "Currently, the stock price is at a price-to-earnings ratio (PER) of 6.9 times and a price-to-book ratio (PBR) of 0.7 times based on this year's estimated earnings, so if external variables stabilize, it will rebound quickly."