As of 9:49 a.m. on June 16, Cuckoo Holdings was trading at 31,450 won on the Korea Exchange, up 650 won (2.11%) from the previous session. During the session, the price rose as high as 32,850 won, setting a new 52-week high.
On this day, NH Investment & Securities raised its target price for Cuckoo Holdings from 31,500 won to 40,000 won, citing expectations for earnings growth and a reduction in the holding company discount. Lee Seungyoung, a researcher at NH Investment & Securities, explained, "We raised the target price-to-earnings ratio (PER) for the home appliance business due to continued growth in other product sales, and reflected a reduction in the holding company discount as a result of government efforts to vitalize the capital market, such as the push for amendments to the Commercial Act." He added, "As sales of other products continue to grow, mainly in the domestic market, the company's high dependence on electric rice cookers is expected to decrease. The proportion of sales from other products is projected to increase from 19% in 2023 to 29% in 2025."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
