POSCO (PKX) Upgraded to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of POSCO (NYSE:PKX) from a sell rating to a hold rating in a report published on Thursday morning.

According to Zacks, “For 2018, POSCO anticipates consolidated revenues of approximately KRW 64.8 trillion. Improving steel demand will drive POSCO’s performance. POSCO will benefit from mergers and business expansion. The merger of POSCO Chemtech and POSCO ESM, which is currently under review, is likely to boost its battery business and is expected to lead to synergies in the first half of 2019. Improvement in steel export will create solid business opportunities for POSCO. However, POSCO's performance will be hurt by volatile exchange rate, steel prices and a highly competitive environment. Moreover, POSCO's ADR has underperformed the industry over the past year.”

Several other brokerages also recently commented on PKX. Goldman Sachs Group downgraded POSCO from a buy rating to a neutral rating in a report on Monday, October 8th. Morgan Stanley began coverage on POSCO in a report on Wednesday, November 7th. They set a weight rating on the stock. Finally, ValuEngine downgraded POSCO from a sell rating to a strong sell rating in a report on Monday, January 7th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company’s stock. The company has an average rating of Hold and an average price target of $98.00.

Shares of PKX stock opened at $56.96 on Thursday. POSCO has a 12 month low of $52.17 and a 12 month high of $93.12. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.21 and a current ratio of 1.76. The company has a market cap of $19.99 billion, a price-to-earnings ratio of 7.35, a P/E/G ratio of 1.14 and a beta of 1.12.

POSCO (NYSE:PKX) last announced its quarterly earnings results on Wednesday, December 5th. The basic materials company reported $2.87 EPS for the quarter. POSCO had a return on equity of 6.51% and a net margin of 4.90%. The company had revenue of $14.77 billion for the quarter. On average, sell-side analysts anticipate that POSCO will post 9.35 earnings per share for the current fiscal year.

Institutional investors have recently made changes to their positions in the company. SG Americas Securities LLC grew its stake in shares of POSCO by 50.2% in the third quarter. SG Americas Securities LLC now owns 3,087 shares of the basic materials company’s stock worth $204,000 after acquiring an additional 1,032 shares during the last quarter. Capital Fund Management S.A. acquired a new stake in shares of POSCO in the third quarter worth $244,000. Tower Research Capital LLC TRC acquired a new stake in shares of POSCO in the third quarter worth $278,000. HPM Partners LLC grew its stake in shares of POSCO by 19.1% in the second quarter. HPM Partners LLC now owns 4,630 shares of the basic materials company’s stock worth $343,000 after acquiring an additional 744 shares during the last quarter. Finally, Blair William & Co. IL acquired a new stake in shares of POSCO in the third quarter worth $315,000. Institutional investors and hedge funds own 4.89% of the company’s stock.

About POSCO

POSCO manufactures and sells steel rolled products and plates in South Korea and internationally. It operates through four segments: Steel, Construction, Trading, and Others. The company offers hot and cold rolled steel, steel plates, wire rods, galvanized and electrical galvanized steel, electrical and stainless steel, automotive materials, titanium, magnesium, and aluminum-plated products.

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