[Click e-Stock] "Misto Holdings Raises Target Price to 60,000 Won After Treasury Share Cancellation"

Daishin Securities announced on December 18 that it is maintaining its "Buy" investment rating on Misto Holdings and raising its target price to 60,000 won, following the company's announcement to cancel all of its treasury shares.

Yoo Junghyun, an analyst at Daishin Securities, explained, "The upward revision of the target price is due to the increase in estimated earnings per share (EPS) following the cancellation of treasury shares." Misto Holdings, an integrated fashion brand operator, announced the previous day through a disclosure that it plans to cancel 7,003,999 shares, or 11.7% of its total shares, representing all of its treasury stock. As a result, the stock price closed at 46,050 won, up 6.84%.

Yoo highlighted that Misto Holdings executed a treasury share buyback worth 180 billion won and an interim dividend payout of 50.4 billion won this year, stating, "It is very positive that the company has proactively worked to enhance shareholder value in line with government policies."

He added, "Misto Holdings is using the abundant cash flow generated from its global brand business as a resource to enhance shareholder value," and predicted, "This will have a positive effect on the company's stock revaluation over the medium to long term."

Misto Holdings' fourth-quarter revenue and operating profit are expected to reach 862.5 billion won and 2.6 billion won, respectively, compared to the previous year. Yoo noted, "Operating profit is expected to turn positive," and explained, "Every year in the fourth quarter, Acushnet records a loss due to inventory valuation losses, which also affects the company's overall operating profit structure."