[THE INVESTOR] Cosmax’ earnings will continue to rebound this year, said Hyundai Motor Investment and Securities on March 23, maintaining a “buy” recommendation and 158,000 won (US$146.24) target price.

Its stock price has fluctuated last year but is beginning to stabilize since the beginning of this year as external factors lose their effects, said analyst Cho Yong-seon. Deteriorating fundamentals and improving sentiments have been alternating for the company but this year, its earnings will improve visibly on low baseline and improved external environment, said the analyst. 

Although the direction of the company remains unclear, its revenue this year will hike 31.5 percent on-year to 1.16 trillion won and operating profit by 76.5 percent to 62 billion won, estimated Cho. Its stock price remains stable having risen 14.5 percent from the beginning of the year but remains low at 33.5 times price-earnings ratio, added the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)