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G Sachs Cuts S Korea KOSPI Index 12-Month TP 25% to 9,000
2026-10-26 11:09:15 Goldman Sachs cut its 12-month target for South Korea's KOSPI Index by 25% to 9,000 from 12,000, reflecting concerns over the artificial intelligence investment theme. Following a plunge of more than 35% in the KOSPI Index from its June peak, valuation assumptions have become more conservative. However, the recent sell-off has left the South Korean equity market significantly undervalued, and the revised forecast still implies more than 60% upside from current levels. Goldman Sachs said market expectations for fundamentals are overly pessimistic. The downward revision to the index target incorporates more conservative assumptions on how the market reflects fundamentals, but the bank still believes the market currently offers an attractive risk-reward profile. Goldman Sachs added that current semiconductor valuations imply a 65% decline in industry earnings next year, but it believes this forecast is excessively pessimistic. Forecast price-to-earnings ratios for non-chip stocks stand at 7.6x. The bank remains positive on investment opportunities in power, industrial and corporate governance-related stocks, as well as companies benefiting from South Korea's inflation trends and pop culture growth. (mn/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |