Zacks Investment Research Downgrades POSCO (PKX) to Hold

POSCO (NYSE:PKX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.

According to Zacks, “Year to date, POSCO's American Depository Receipts (ADR) have outperformed the industry. In third-quarter 2017, the company's net income surged 90.5% year over year and grew 71.1% sequentially driven by increase in operating profit and benefit from selling investment securities. On a consolidated basis, POSCO aims to improve businesses and services, as well as generate revenues of approximately KRW 59.5 trillion in 2017, compared with the previous forecast of KRW 59.3 trillion. Crude steel production is projected to be nearly 37.1 million tons versus 37 million tons expected earlier. However, the company is exposed to risks from higher costs and expenses, industry rivalry, huge debt level, geopolitical issues and foreign currency fluctuations. Earnings estimates on the stock remained stable in the last 60 days.”

Separately, Deutsche Bank raised POSCO from a “hold” rating to a “buy” rating in a report on Monday, December 4th. Three equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. POSCO currently has an average rating of “Buy” and a consensus price target of $82.00.

POSCO (PKX) opened at $78.62 on Tuesday. The stock has a market capitalization of $25,141.46, a price-to-earnings ratio of 12.08, a price-to-earnings-growth ratio of 1.88 and a beta of 1.12. POSCO has a twelve month low of $50.37 and a twelve month high of $79.53. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.68 and a quick ratio of 1.14.

A number of large investors have recently made changes to their positions in PKX. Barry Investment Advisors LLC acquired a new stake in POSCO during the 3rd quarter valued at $216,000. Wealthsource Partners LLC acquired a new stake in POSCO during the 3rd quarter valued at $224,000. Eagle Asset Management Inc. acquired a new stake in POSCO during the 3rd quarter valued at $265,000. Strategic Global Advisors LLC raised its stake in POSCO by 0.3% during the 2nd quarter. Strategic Global Advisors LLC now owns 4,306 shares of the basic materials company’s stock valued at $270,000 after purchasing an additional 15 shares during the period. Finally, Marshall Wace North America L.P. acquired a new stake in POSCO during the 2nd quarter valued at $293,000. 5.37% of the stock is currently owned by institutional investors.

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POSCO is a Korea-based company principally engaged in the manufacture and distribution of steel products. The Company operates in four segments: steel, trading, construction, and others. The steel segment includes production of steel products and sale of such products. The trading segment consists of global trading activities of POSCO Daewoo Corporation, exporting and importing a range of steel products that are both obtained from and supplied to it, as well as between other suppliers and purchasers in Korea and overseas.

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