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Investing.com - Nomura/Instinet upgraded Ecopro BM Co Ltd (KS:247540) stock rating from Neutral to Buy and raised its price target to KRW150,000 from KRW100,000.
The upgrade follows the U.S. Onshoring Battery and Biotech Act (OBBA) enacted on July 4, which Nomura believes will likely push U.S. electric vehicle manufacturers to reduce their reliance on Chinese battery components and materials.
Nomura views this policy shift as creating enhanced opportunities for Korean companies like Ecopro BM, particularly highlighting the company’s strategic initiatives including nickel mining investment in Indonesia and plant construction in Hungary, which will represent 25% of capacity by 2026.
The firm noted Ecopro BM’s improved financial position, with end-2024 net debt/equity ratio falling to 84% from 130% in the third quarter of 2024, following a KRW336 billion perpetual bond issuance.
For 2025, Nomura projects Ecopro BM’s shipments to increase 17% year-over-year despite an estimated 18% decline in average selling price, with electric vehicles, energy storage systems, and power tools accounting for 69%, 10%, and 21% of revenue respectively.
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