Daishin Securities Co.cut its price target on Nongshim Co.'s stock to 530,000 won ($397) from 550,000 won ($412) on Tuesday, saying the company's overseas sales recovery is slower than expected, leading to weaker-than-expected third-quarter results.“We expected overseas sales to recover due to the easing of the base burden in the Americas in the second half of the year and the effect of replacing the distributors in China, but the recovery of the US and Chinese subsidiaries was slower than expected,” Daishin pointed out.
Daishin also lowered Nongshim’s full-year operating profit estimate by 3% to 202 billion won from 208 billion won, and its operating profit estimate for next year by 6% to 221 billion won from 236 billion won.“We expect a gradual recovery of sales in the Americas through the start-up of a new production line in the US at the end of the third quarter and the expansion of shelf space in Walmart.
Daishin maintained a "Buy" rating on Nongshim, saying that the recent stock correction has eased valuation pressure, limiting further share price declines.by Sung-Mi Shimsmshim@hankyung.
The story "Daishin Securities lowers its price target for Nongshim" has 226 words across 10 sentences, which will take approximately 1 - 2 minutes for the average person to read.
Which news outlet covered this story?
The story "Daishin Securities lowers its price target for Nongshim" was covered 5 days ago by Korea Economic Daily, a news publisher based in South Korea.
How trustworthy is 'Korea Economic Daily' news outlet?
Korea Economic Daily is a fully independent (privately-owned) news outlet established in 1964 that covers mostly economy news.
The outlet is headquartered in South Korea and publishes an average of 0 news stories per day.
It's most recent story was published 1 days ago.
What do people currently think of this news story?
The sentiment for this story is currently Neutral, indicating that people are not responding positively or negatively to this news.
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.
