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On Thursday, CLSA analysts upgraded BGF Retail Co Ltd. (282330:KS) stock rating from Outperform to High-Conviction Outperform. The analysts also increased the price target to ₩152,000 from ₩138,000.
The upgrade reflects expectations that BGF Retail could benefit significantly from the new government in South Korea, particularly in the consumer sector. Analysts anticipate that a potential tobacco price hike, special subsidies, and improvements to shareholder return policies could drive growth.
Additional factors contributing to the positive outlook include accelerating consolidation within the industry, price increases by vendors, and the expansion of BGF Retail’s product selection. These elements are seen as catalysts for the company’s operations.
BGF Retail is now considered a top pick in the Korean consumer sector by CLSA. The analysts believe these developments position the company favorably in the current market environment.
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