[Market Focus] Expectations of Cigarette Price Hike... KT&G Maintains Upward Momentum

KT&G's stock price continues its upward trend, driven by expectations of a cigarette price increase following the amendment of the Commercial Act.

As of 9:39 a.m. on July 8, KT&G was trading at 137,000 won, up 8,000 won (0.59%) from the previous trading day. At one point after the market opened, the stock had risen by as much as 1.91%.

Recently, KT&G's stock price has shown a steep upward curve. On the previous day, KT&G closed at 136,200 won, up 5.09% from the prior trading day, surpassing the 130,000 won mark at closing for the first time in nine years since 2016.

On this day, IBK Investment & Securities raised its target price for KT&G by 14.3% from the previous level to 160,000 won. The firm also maintained its buy recommendation.

Kim Taehyun, a researcher at IBK Investment & Securities, stated, "Considering that the market's expectations for second-quarter earnings are not high, the stock price increase is being driven by expectations of a future cigarette price hike following the amendment of the Commercial Act. The continued strong performance of overseas cigarette sales is also a positive factor."