Korea Electric Power shares fall 8.41% intraday as BofA downgrades to Neutral citing rising energy costs and margin pressure.

Korea Electric Power fell 8.41% intraday following BofA Securities’ downgrade of the stock to Neutral from Buy, citing rising energy costs and limited ability to pass them on to consumers. The firm lowered its price target to KRW47,000 from KRW70,000, highlighting structural grid bottlenecks and near-term margin pressures. The downgrade came amid geopolitical tensions elevating oil and LNG prices, increasing KEPCO’s cost burden. Despite strong Q4 2025 earnings, investors remain concerned over future cost inflation and regulatory constraints. The bearish sentiment aligns with the stock’s sharp intraday decline, as the downgrade signals tempered expectations for profitability in the coming months.