[EQUITIES] ‘STI remains undervalued’
[THE INVESTOR] STI’s stock price has risen but it is still underrated, said Shinyoung Securities on May 19, maintaining a “buy” recommendation and raising the target price to 20,000 won (US$17.76) from 16,500 won.
Its stock price hiked 23 percent in three months as display manufactures expanded investment in OLED and released strong earnings but is still low by 6.4 times its price-earnings ratio, said analyst Jeong Gyu-bong.
To meet the growing demand for OLED, panel makers will spend more aggressively, particularly in China on the back of government support, according to the analyst.
STI’s backlog orders reached 80 billion won in the first quarter and it will benefit in the long term, said Jeong.
By Hwang You-mee (firstname.lastname@example.org)