Gold prices cool after hitting over 2-week high on Fed independence fears
Investing.com - UBS has upgraded POSCO (NYSE:PKX) from Sell to Neutral and significantly raised its price target to KRW320,000 from KRW225,000, representing a 42% increase. The steel giant, with a market capitalization of $16.7 billion, has already delivered an impressive 25.35% return year-to-date.
The upgrade comes as UBS acknowledges it "missed the rally" in POSCO shares, having underestimated several key factors affecting the company’s outlook, including the impact of China’s anti-involution policies on lithium supply.
UBS also cited the resilience of China’s steel demand, the effect of Chinese steel output cuts, and firm global economic demand indicators despite U.S. tariff concerns as reasons for the rating change.
The investment bank believes the stock is currently trading near mid-cycle valuations, suggesting limited upside potential in the near term.
UBS indicated it could adopt a more positive stance if China’s steel reform leads to material steel capacity closures, while noting potential downside risks if steel and EV battery demand weakens amid macroeconomic uncertainties.
In other recent news, POSCO has been at the center of analysts’ attention with notable updates. Morgan Stanley (NYSE:MS) downgraded POSCO from Overweight to Equalweight, while raising its price target to KRW410,000. This suggests a potential 31% upside from current levels, according to Morgan Stanley’s analysis. Meanwhile, Nomura upgraded POSCO from Neutral to Buy, citing the company’s Corporate Value-Up plan as a key factor. As part of this plan, POSCO disclosed the cancellation of 6% of its treasury shares over 2024-2026, with 4% already canceled in 2024-2025. Nomura has also increased its price target for POSCO to KRW330,000. These developments reflect differing analyst perspectives on the company’s future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.