Woori Finance Holdings Co, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Jeehoon Park from Bank of America Securities maintained a Buy rating on the stock and has a $72.26 price target.
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Jeehoon Park has given his Buy rating due to a combination of factors that indicate a positive outlook for Woori Finance Holdings Co. The company has addressed concerns about asset quality, particularly in project financing, by provisioning adequately, which is expected to be completed within the year. This proactive approach, along with policy support such as rate cuts and a supplementary budget, has contributed to a modest recovery in economic activity, thereby enhancing asset quality.
Furthermore, Woori’s recent insurance acquisitions are beginning to contribute to non-interest income, and its brokerage business is starting to ramp up, both of which are expected to significantly boost earnings in the coming years. Despite lower market rates, the company’s margins remain robust due to a faster decline in funding costs compared to lending rates. Additionally, Woori’s strong capital management and faster-than-expected capital building pace suggest potential for increased shareholder returns. The company’s recent financial performance, including a notable net profit increase, supports this optimistic outlook.
WF’s price has also changed dramatically for the past six months – from $32.440 to $56.470, which is a 74.08% increase.