POSCO Holdings Inc (PKX) stock surges 7.27% on July 21.

Shares of POSCO Holdings Inc (PKX) surged 7.27% on July 21, reaching an intraday high of $59.86. The stock is currently 19.40% below its 52-week high and 51.41% above its 52-week low. Analysts forecast an average target price of $58.43, with a high estimate of $58.43 and a low estimate of $58.43. The average brokerage recommendation is 2.5, indicating an "Outperform" status. The estimated GF Value for POSCO Holdings Inc in one year is $56.68, suggesting a downside of 4.99% from the current price.

Shares of POSCO Holdings Inc (PKX) surged 7.27% in mid-day trading on July 21, reaching an intraday high of $59.86 before settling at $59.66. This marked a significant increase from the previous close of $55.61. The stock is currently trading 19.40% below its 52-week high of $74.01 and 51.41% above its 52-week low of $39.40 [1].

Analysts have provided a cautious outlook for the stock. The average target price for POSCO Holdings Inc (PKX) is $58.43, with a high estimate of $58.43 and a low estimate of $58.43. This average target price implies a potential downside of 2.05% from the current price of $59.66 [1]. The average brokerage recommendation is 2.5, indicating an "Outperform" status, suggesting a mixed sentiment among analysts [1].

GuruFocus estimates that the GF Value for POSCO Holdings Inc (PKX) in one year is $56.68, suggesting a downside of 4.99% from the current price of $59.655. The GF Value is calculated based on historical multiples, past business growth, and future performance estimates [1].

POSCO Holdings’ second-quarter performance is expected to be lower than anticipated, with the operating profit projected to decrease by 8.86% year-on-year to 685.4 billion won. The main cause of this decline is attributed to the sluggish secondary battery materials sector, which is expected to incur an operating loss in the range of 100 billion won [2]. The sharp drop in lithium prices has significantly impacted the profitability of this sector, with the price of lithium carbonate falling to about one-tenth of its peak in November last year [2]. Despite this, Chairman Chang In-hwa has emphasized the group's commitment to investing in the secondary battery materials sector, highlighting the importance of electric vehicles in the global eco-friendly car market [2].

The steel sector, however, is expected to show relatively favorable results, with the operating profit projected to be in the 500 billion won range, an increase compared to the same period last year. This improvement is attributed to the announcement of anti-dumping investigation results for hot-rolled steel at the end of July and expectations of production cuts in China in the second half of the year [2].

References:
[1] https://www.gurufocus.com/news/2991168/posco-holdings-inc-pkx-trading-727-higher-on-jul-21
[2] https://www.businesskorea.co.kr/news/articleView.html?idxno=247382