S-Oil target price raised to as much as 20 won, highlighting dividend appeal
S-Oil’s target price has been raised to as much as 20 won, and record-high results are being projected in the lubricating base oil segment. Despite lower international oil prices, 2quarterly earnings surprise expectations and dividend appeal through next year are the key points.
S-Oil’s target price has been raised to as much as 20 won, drawing attention to its dividend appeal. Expectations for dividends are a factor that leads investors to reconsider cash flow and profit distribution from an investor’s perspective.
Even with lower international oil prices, 2a quarterly earnings surprise is being raised as a possibility. In the securities industry, improved performance in the lubricating base oil segment is seen as supporting this expectation.
The lubricating base oil segment is forecast to post record-high results. The segment’s contribution to company earnings is seen as an important variable in this year’s performance.
The target price has been raised, and there is growing sentiment that its appeal as a dividend stock will be revived through next year. Changes in dividend policy or disclosure of the dividend payout ratio are cited as key points to watch.
This shift is linked to the view that upside in refining company earnings has been confirmed despite oil price volatility. However, the possibility of margin pressure if crude prices fall further still remains.
Investors are 2paying attention to the quarterly earnings announcement and the company’s dividend disclosure. In that disclosure, they will need to check the specific figures related to lube base oil and any dividend-related decisions.
Sources: 매일경제 증권
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