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[Alpha Biz=(Chicago) Reporter Kim Jisun] Korea Investment & Securities maintained its purchase opinion on SK Innovation on the 7th and raised its target price by 1.6% from 236,148 won to 240,000 won.
SK Innovation recorded sales of 19.9 trillion won and operating profit of 1.5631 trillion won in the third quarter. It is above 49% of the market consensus.
"Despite deficits at major subsidiaries, profitability in the oil refining sector has improved more than expected," Korea Investment & Securities Co. said. "The rise in oil prices and refining margins has led to a turnaround in the black and surprise earnings."
Korea Investment & Securities added, "Oil prices soared due to unstable inventory levels due to active production cuts by OPEC+, a consultative body of major oil-producing countries, and refining margins rose by $9 compared to the previous quarter due to increased seasonal demand and a recovery in transportation demand for aviation oil."
Korea Investment & Securities said SK Innovation's stock price was undervalued.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
