[Click e-Stock] This Stock Soars on Merger Expectations

Mirae Asset Securities has raised its target price for Korean Air from 33,000 won to 37,000 won. The investment opinion remains a buy.

On September 10, Mirae Asset Securities analyst Ryu Je-hyun stated, "We believe that a valuation upgrade is possible, considering the improvement path of return on equity (ROE) after the integration and the structural profitability of the cargo division."

He added, "In addition to the performance momentum created by currency stabilization and the peak season for cargo, expectations surrounding the official launch of a mega carrier are gaining traction, which could drive the share price higher."

For this year, consolidated quarterly sales are expected to reach 7.2595 trillion won, up 20.5% year-on-year, and operating profit is forecast to soar 210.2% to 488.7 billion won. Analyst Ryu commented, "We forecast a turnaround in the second quarter, escaping from operating loss, as both the passenger and cargo divisions recover during the peak season." He further explained, "Strong transfer demand caused by the war, combined with high-value-added demand centering on the semiconductor and artificial intelligence (AI) industrial goods sectors, is driving this trend."

Expectations for integration are rising, as the merger with Asiana Airlines is expected to be completed by the end of the year. Ryu also noted, "From the fourth quarter of this year, we expect to see synergies sequentially realized, including route overlap adjustments, redeployment of equipment, and mileage program integration."

This content was produced with the assistance of AI translation services.