Securities firms raise price targets for S-Oil and SK Innovation amid falling share prices
5This month, as a ceasefire agreement between the United States and Iran took shape, international oil prices fell and refiner stocks weakened. Even so, securities firms raised their price targets for S-Oil and SK Innovation this month. They cited the possibility that high oil prices could persist even after a ceasefire.
5International oil prices fell this month as discussions on a ceasefire agreement between the United States and Iran advanced. As a result, domestic refiner stocks came under broad downward pressure. S-Oil and SK Innovation also saw their share prices retreat.
Even so, securities firms raised their price targets for S-Oil and SK Innovation this month. The firms have said they raised their targets. The size of the increases and the reasons for them vary by firm.
One reason cited by securities firms for raising their targets was the possibility that high oil prices could persist even after a ceasefire agreement. They reportedly judged that this would be favorable to refiners’ profitability. Some firms were also said to have considered price trends for petrochemical products.
Although share prices weakened in the near term, upward revisions to securities firms’ target prices affected investment views and price expectations. News of the target price increases spread along with investment reports on related stocks. Investors are referring to reports from individual securities firms.
S-Oil and SK Innovation were cited as leading refiners included among those whose target prices were raised this month. Specific performance indicators and disclosures for the two companies should be confirmed in materials released by each company. The analyses varied somewhat among securities firms.
This case illustrates a situation in which changes in international affairs and securities firms’ target price estimates are influencing the market at the same time. There was a time lag between share price movements and the release of target prices by securities firms. Investors are checking company disclosures alongside securities firms’ reports.
Sources: 매일경제 증권
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