By Saeromi Shin
April 24 (Bloomberg) -- Samsung SDI Co., the world’s third- largest maker of rechargeable batteries, rose to an eight-month high after its share-price estimate was raised by Hyundai Securities Co., citing an improving outlook.
The stock rose 1.3 percent to 89,400 as of 9:27 a.m. in Seoul, gaining for a fourth day and set for its highest close since Aug. 18. South Korea’s benchmark Kospi index added 0.4 percent.
Samsung SDI had its share price target raised by 43 percent to 120,000 won at Hyundai Securities, which said earnings are expected to recover. The brokerage maintained its “buy” recommendation on the stock in a report dated yesterday.
“We think the company will confirm its bottom in the first quarter,” driven by rising demand for batteries and plasma display panels, as well as cost cuts, Hyundai Securities analysts including Jeff Kim said in the report.
The company reported an unexpected fourth-quarter loss in January after the company wrote down the value of a plasma- display production line. The net loss was 38.9 billion won ($29 million), compared with a loss of 273.9 billion won a year earlier, Suwon, South Korea-based SDI said. Sales, including those from overseas affiliates, rose 24 percent to 1.46 trillion won.
To contact the reporter on this story: Saeromi Shin in Seoul at sshin15@bloomberg.net
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