"Doosan Fuel Cell's Stock Fails to Reflect 'US Market Entry'... Target Price Raised by 73%"[Click eStock]

Raised Target Price from 42,000 Won to 73,000 Won

On September 10, SK Securities raised its target price for Doosan Fuel Cell from 42,000 won to 73,000 won, while maintaining its "Buy" investment opinion.

Naminsik, a researcher at SK Securities, stated that "the halt in permits for AI data center construction in the United States remains a factor weighing on the stock price. However, we expect the permit-related headline risk to gradually dissipate after the U.S. midterm elections on November 3."

Previously, on September 2, Doosan Fuel Cell announced that it had signed a contract with its U.S. subsidiary, HyAxiom, to supply PAFC fuel cell systems worth 501.4 billion won. The products will be manufactured at the Iksan factory and supplied to HyAxiom, which will then deliver them to AI data centers in the United States. The payment structure consists of a 20% advance upon purchase order, 75% interim payment, and 5% balance. Researcher Na added, "A 20% advance payment structure is significant given the current financial situation, where working capital pressure has increased."

Na further explained, "Regulations on data centers do not imply a ban on AI investments. At its core, the issue is a political compromise over who—among hyperscalers, utilities, and voters—will bear the burden of rising household electricity costs."

Additionally, he emphasized that fuel cells are a "solution," not a victim, of AI-related regulations, analyzing that they have advantages in rapid power connections and community acceptance. He said, "Although gas turbines are the top priority for onsite power generation, the lead time for them has already been extended to the point that they are no longer a viable option. Fuel cells, with their relatively shorter lead times, could come to the fore."

The researcher also noted that fuel cells could be a solution in terms of community acceptance. He stated, "Oracle’s main reason for replacing gas turbines and diesel generators with fuel cells in Project Jupiter was to ensure local acceptance by reducing carbon dioxide emissions," adding that "the BE management also emphasized that opposition from community residents could actually present an opportunity."

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