Korean Analysts Predict 28% Upside
Watch the video with Andrew Stotz or read Watching the Street: Korea below.
Consensus Recommendations: Korea
What are analysts saying about Korea? The first thing we look at is consensus recommendations. Analysts in Korea, relative to other countries in Asia, have turned from pessimism to optimism.
Learn more: How to Benefit from Our Watching the Street Charts
In fact, once they get over the blue bar, the neutral moves to buy, which signals that analysts in Korea are the most optimistic they’ve been in quite awhile.
Two financial sector companies, Hanwha General Insurance and Meritz Securities are among the companies with most positive recommendations in Korea.
Samsung Group has two companies on the list of most negative recommendations: Samsung Engineering and Samsung Heavy Industries.
Consensus Earnings Estimates: Korea
For 2016, the always optimistic Korean analysts are a bit more pessimistic than usual and forecast “only” 22% EPS growth.
While Samsung companies in the industrials sector have the most negative recommendations, Samsung SDI tops the list of highest consensus EPS growth estimates.
Samsung SDI produces plasma displays, while LG Display produces LCD, LED and OLED displays and is among the companies with the lowest consensus EPS growth estimates.
Consensus Target Prices: Korea
Expected return implied by target prices are in an uptrend for the first time since 2015. The 12-month forward return sits at 28%, about the same as it was in August.
KDN manufactures heating, ventilation and air conditioning products. Analysts expect an additional 95% upside after almost a 50% share price gain YTD.
As for the lowest consensus target price expected return, we can again see that analysts are optimistic as the highest downside is only -9%.
Do YOU use any kind of analyst estimate when considering an investment?
Let us know in a comment below.
DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.