UBS sets Doosan Enerbility stock Buy rating, KRW40,000 target

Published 19/05/2025, 17:08
UBS sets Doosan Enerbility stock Buy rating, KRW40,000 target

On Monday, UBS initiated coverage on Doosan Enerbility Co Ltd (034020:KS), an established manufacturer of nuclear and gas power equipment, with a Buy rating and a price target of KRW40,000. The firm’s analysts pointed to the ongoing global nuclear renaissance and the company’s specialization in components for traditional reactors and small modular reactors (SMRs) as key factors for their positive outlook.

Doosan Enerbility is also seen as a potential beneficiary of the growing demand for gas turbines, driven by power demand growth and the expansion of AI data centers. According to UBS, there is a global supply-demand imbalance that presents opportunities for new entrants in the market, and Doosan Enerbility, with approximately 80% of its expected new orders in 2025 related to nuclear and gas, is well-positioned to capitalize on these opportunities.

The analysts forecast a strong growth trajectory for Doosan Enerbility’s core business, projecting an operating profit (OP) compound annual growth rate (CAGR) of 51% from 2025 to 2027. They believe that the stock has not yet fully priced in the potential catalysts for the company, which include global nuclear energy policy announcements and new orders for nuclear and gas turbines.

UBS’s coverage initiation comes at a time when the energy sector is looking for stable and innovative solutions to meet the increasing global energy demand. Doosan Enerbility’s focus on both nuclear and gas power equipment positions it at the forefront of addressing these challenges. The company’s potential to secure new orders in the nuclear and gas turbine markets is seen as a significant driver for its future growth and profitability.

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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