[EQUITIES] ‘SK Networks to remain slack for now’
[THE INVESTOR] SK Networks will continue to be slow for the time being, said Hyundai Motor Investment and Securities on July 17, lowering the target price to 8,000 won (US$7.09) from 11,000 won.
Its earnings has been sluggish since last year and is weighing down the stock price. It will remain so for some time as it bears costs from additional personnel restructuring, said analyst Park Jong-ryeol.
The company’s second-quarter revenue on a consolidated basis will be down 1.8 percent to 4.43 trillion won and operating profit will tumble 59.7 percent to 15.7 billion won, estimated the analyst.
It is actively revamping its business structure to advance profits but the process is prolonged, and its disappointing earnings in the first half does not leave much room for a rebound, said Park.
By Hwang You-mee (firstname.lastname@example.org)