CLSA upgrades Cosmax stock to High-Conviction Outperform on US growth

Published 20/08/2025, 11:30
CLSA upgrades Cosmax stock to High-Conviction Outperform on US growth

Investing.com - CLSA upgraded Cosmax Inc (KS:192820) to High-Conviction Outperform from Outperform on Wednesday, setting a price target of KRW281,000.00.

The upgrade comes after Cosmax shares declined over 30% following its second-quarter 2025 results, with investors concerned about the company’s performance in its Korean and Indonesian markets.

CLSA noted that lower domestic sales guidance primarily reflects a relocation of orders from Korea to China, with Korean sales still growing at 20%. The firm expects domestic margin improvement to resume in early 2026.

The research firm believes the market is only factoring in potential downside from Cosmax’s Southeast Asia business, which could impact quarterly results by approximately KRW2 billion, while ignoring potential upside from US operations that could contribute an additional KRW3 billion per quarter.

This favorable risk-reward balance prompted CLSA to raise its rating from Outperform to High-Conviction Outperform, maintaining its KRW281,000 price target for the cosmetics manufacturer.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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