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Investing.com - Bernstein has initiated coverage on Doosan Enerbility Co Ltd (KS:034020) with an Outperform rating and a price target of KRW80,000.00, citing the company’s competitive position in the nuclear energy sector.
The research firm highlights Doosan’s capability to execute nuclear projects efficiently at a competitive cost of $60/MWh, giving it an advantage in Western markets that are avoiding Chinese and Russian suppliers. Bernstein also notes Doosan’s manufacturing of next-generation Small Modular Reactors (SMRs), which could expand nuclear scalability beyond 2030.
Bernstein forecasts 94% EPS growth for Doosan from 2024-27, exceeding consensus estimates, and projects standalone revenue to reach KRW14 trillion by 2030, representing an 8% CAGR. The firm expects margin expansion as sales shift toward higher-margin nuclear and gas turbine products, potentially lifting operating profit margin from 3% in 2024 to 9% by 2027.
Near-term catalysts identified include positive revisions linked to the Czech Republic nuclear project, US export contract wins, and SMR commercialization. Bernstein acknowledges Doosan’s current valuation is high at a 2025 P/E of 115x, though it expects this to normalize to 27x by 2030.
The firm believes a premium valuation is warranted given high industry entry barriers and Doosan’s market position, while noting potential risks including project delays, cost overruns, and possible shortfalls in AI-related demand.
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