Bank of America Securities analyst Sun Jung Lee reiterated a Buy rating on KT (KT – Research Report) today and set a price target of $21.54.
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Sun Jung Lee has given his Buy rating due to a combination of factors, primarily focusing on KT’s strategic financial maneuvers and future growth prospects. Despite the operating loss recorded in the fourth quarter due to significant restructuring costs, the adjusted operating profit excluding these costs showed a substantial year-over-year increase, driven by effective cost control in the telecommunications sector and robust growth in KT Cloud and B2B services.
Additionally, KT’s commitment to enhancing shareholder value through a share buyback and cancellation program, along with projected increases in dividends per share, underscores their focus on returning value to investors. Looking ahead, KT’s profitability is expected to improve significantly by 2025, bolstered by reduced labor costs post-restructuring, streamlined operations, and expansion in AI and data center businesses. These elements combined with attractive shareholder returns make KT an appealing investment, justifying the Buy rating with a price objective of KRW 56,000.