LS Securities Cuts KEPCO Target Price to 48,000 Won on Middle East Tensions, Energy Costs

NG2.72%
According to LS Securities on September 8, Korea Electric Power (KEPCO) had its target price cut to 48,000 won from 52,000 won, a 7.7% reduction, as Middle East tensions push energy commodity prices higher. Dubai crude oil has surged past $100 per barrel, with liquefied natural gas and coal prices remaining elevated. Q3 operating profit is now projected to decline 66.3% year-over-year to 1.906 trillion won, with full-year operating profit estimated at 8.131 trillion won, down 39.7% from last year. Despite near-term headwinds, LS Securities maintains a "buy" rating, citing long-term growth driven by power demand from artificial intelligence data centers and semiconductor clusters, which require an additional 39.7 gigawatts of capacity, along with opportunities in overseas nuclear power projects.
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