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Investing.com - UBS downgraded Samsung Heavy Industries Co Ltd (KS:010140) from Buy to Neutral while raising its price target to KRW21,000.00 from KRW18,000.00.
The downgrade comes as the shipbuilder’s share price has surpassed UBS’s target, with the firm’s performance largely catching up to its peers, according to UBS analyst Yong-Suk Son.
UBS cited several factors that could limit further upside, including slower-than-expected liquefied natural gas carrier (LNGC) orders from the second half of 2025, softening ship prices, and weak year-to-date orders through July, which represent only 34% of the company’s 2025 target.
Despite these concerns, UBS noted that Samsung Heavy Industries’ position as a key LNG beneficiary and its guidance of three floating LNG (FLNG (OL:FLNG)) projects in the pipeline could provide downside support in the near term.
While Samsung Heavy Industries reported better-than-expected second-quarter 2025 profits, UBS found the company’s guidance for flat profits and margins in the second half of 2025 "uninspiring," with potential higher plate prices posing a risk to earnings.
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