Hankook Stock Jumps Following Morgan Upgrade
Hankook Tire’s share price has “jumped” 5.4 per cent following an upgrade from Morgan Stanley. The South Korea-based tyre manufacturer’s share price rose to 15,500 won at closing on 20 February, the largest gain since 18 December. The national Kospi index dropped 1.9 per cent. Morgan Stanley raised its rating on Hankook to “overweight”’ from “equal-weight”’ in a report dated today. “While the market seems nervous on higher raw material prices, we are more comfortable with the company’s ability to protect its margin,” Seoul-based market watchers, such as Jason Kang wrote. “The industry has been maintaining pricing power” through consolidation.
Hankook, based in Seoul, aims to boost operating profit, or sales minus the cost of goods sold and administrative expenses, by 32 per cent this year, helped by higher prices, the company said earlier this month.