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Korea Investment & Securities Raises Silicon2 Target Price on European K-Beauty Demand
Retail Trade · Internet Retail · yonhap_finance · 2026-09-03
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Korea Investment & Securities hiked its target price for Silicon2 to 65,000 KRW, anticipating strong earnings growth driven by rising K-beauty demand in Europe.
What Happened
Target Price Hike: Korea Investment & Securities has raised its target price for Silicon2 from 60,000 KRW to 65,000 KRW, citing strong growth prospects driven by the rising popularity of Korean cosmetics in Europe. The firm expects the company to benefit significantly from increased offline channel penetration across the region.
European Market Expansion: The company's major clients, such as the UK-based retailer Boots, are seeing sustained demand for Korean beauty products. Analysts anticipate that Silicon2 will continue to secure new distribution partners, such as Douglas, further bolstering its performance in the second half of the year.
Earnings Forecasts: The brokerage firm has upwardly adjusted its operating profit estimates for both this year and the next, citing the company's attractive valuation within the cosmetics sector. Silicon2 is currently viewed as a relatively safe investment option compared to its peers.
Risk Considerations: Analysts cautioned that a sustained strengthening of the Korean Won could pose a risk to the company's export-driven earnings. Investors are advised to monitor currency trends as a potential headwind for future financial results.