Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - Morgan Stanley (NYSE:MS) downgraded POSCO (NYSE:PKX) from Overweight to Equalweight on Friday, while simultaneously raising its price target to KRW410,000 from KRW280,000.
The South Korean steelmaker’s new price target represents approximately 31% upside potential from current levels, according to Morgan Stanley’s analysis.
Morgan Stanley cited growing signs of steel supply discipline in the region, including China’s steel production cuts and additional anti-dumping duty announcements across Korea, Vietnam, and Malaysia.
The investment bank expects POSCO’s steel margins to steadily improve into the second half of 2025 and into 2026, projecting robust annual operating profit growth of 27% year-over-year for 2025 and 30% for 2026.
The Korean government is also expected to announce anti-dumping measures on Chinese and Japanese hot-rolled coils in the coming months, potentially supporting a more sustainable steel pricing recovery outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.