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DB Securities Boosts S-Oil Target Price to 190,000 Won, Cites Strong Refining Margin Outlook
🇰🇷 South Korea /Economy & Trade

DB Securities Boosts S-Oil Target Price to 190,000 Won, Cites Strong Refining Margin Outlook

From Chosun Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

Analysis Official statement New plan
  • DB Securities raised S-Oil's target price to 190,000 won from 140,000 won, maintaining a 'buy' recommendation.
  • The firm anticipates strong refining margins to continue even after oil prices stabilize, projecting a positive outlook for S-Oil.
  • S-Oil's second-quarter operating profit is expected to be 878.7 billion won, a 29% decrease from the previous quarter but a turnaround to profit compared to the same period last year.

DB Securities has upgraded its target price for S-Oil to 190,000 won, an increase from the previous 140,000 won, while reiterating its 'buy' recommendation. The brokerage firm forecasts that refining margins will remain robust even after oil prices stabilize, indicating a positive outlook for the company.

Despite an anticipated 29% quarter-on-quarter decrease in operating profit for the second quarter, reaching an estimated 878.7 billion won, S-Oil is expected to achieve a year-on-year profit turnaround. This suggests resilience in the company's performance amidst market fluctuations.

DB Securities' analysis points to the potential for refining margins to show a limited decline even as oil prices stabilize. This projection underpins the firm's confidence in S-Oil's sustained profitability and its 'buy' rating.

DistantNews Editorial

Originally published by Chosun Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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