[Market Focus] Target Prices Raised After Strong Earnings... EcoPro BM Rallies Over 4%

EcoPro BM continued its rally on August 6, surging over 4% in early trading. This follows a wave of target price upgrades from securities firms after the company reported second-quarter results that exceeded market expectations.

As of 9:50 a.m. on this day, EcoPro BM was trading at 129,800 won per share on the KOSDAQ market, up 4.26% from the previous trading day. The stock had already been rising on expectations of a positive impact from the recent strengthening of U.S. tariffs on Chinese batteries, and the buying momentum has continued following the release of strong earnings the previous day.

In the second quarter, EcoPro BM posted consolidated sales of 779.7 billion won and operating profit of 49 billion won. While sales decreased by 3.7% year-on-year, operating profit soared by 1,159%, surpassing market consensus.

Securities firms also confirmed a series of target price increases on this day. KB Securities raised its target price for EcoPro BM by 15%, from 130,000 won to 150,000 won. Lee Changmin, a researcher at KB Securities, explained, "The target price was raised because we adjusted the average operating margin estimate for 2026E to 2030E from 4.8% to 5.4%, considering increased sales to major customers in the EV (electric vehicle), small battery, and ESS (energy storage system) sectors."

Kim Hyunsoo, a researcher at Hana Securities, also raised his investment opinion to 'Buy' and the target price to 151,000 won per share, stating, "Profit growth is expected to continue in the third quarter, with projected sales of 798.4 billion won and operating profit of 54.3 billion won." Yoo Jiwoong, a researcher at Daol Investment & Securities, said, "The second-quarter results confirmed the bottom of the industry cycle. It appears that the trend of negative sales growth has ended," and raised his target price from 105,000 won to 160,000 won.

Kwon Junsu, a researcher at Kiwoom Securities, also raised EcoPro BM's target price from 120,000 won to 140,000 won. However, he pointed out, "While the company is likely to remain profitable in the short term, losses in its core business are still inevitable. Considering the slowdown in downstream demand, further shipment adjustments will be needed in the second half of the year." He maintained his investment rating at 'Outperform.'