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Kiwoom Securities Upgrades Korea Electric Power to 'Buy' Despite Price Target Cut
Utilities · Electric Utilities · yonhap_finance · 2026-08-25
015760
Kiwoom Securities has upgraded Korea Electric Power to 'Buy' due to its attractive valuation, even as it lowers the price target on earnings expectations.
What Happened
Price Target Cut: Kiwoom Securities has lowered its price target for Korea Electric Power from 48,000 KRW to 41,000 KRW, reflecting adjusted earnings expectations. However, the firm upgraded its rating to 'Buy,' citing an increasingly attractive valuation.
Improved Earnings Power: The company’s earnings capacity has significantly strengthened compared to 2022, supported by a 40% rise in electricity sales prices and an increased share of nuclear and renewable energy. The risk of large-scale deficits remains low even if oil prices stay above 80 USD per barrel.
Undervaluation: The 12-month forward PBR currently stands at 0.37x, which is below the 0.44x average recorded during periods without major deficits. This suggests that the stock is currently undervalued relative to its intrinsic worth.
Policy Impact: The introduction of region-specific electricity pricing is expected to have a limited short-term impact on earnings. Potential revenue decreases from industrial rate cuts could be offset by lower wholesale power prices, with long-term benefits expected from reduced transmission network investment burdens.