Daishin Securities has assigned an investment rating of 'Buy' to KEPCO E&C (052690) and set a target price of 160,000 won. The assessment is that although second-quarter results were temporarily weak, it is now time to wait for future momentum.

["Temporary Earnings Weakness in 2Q26... Now Is the Time to Wait for Momentum"]

On the 10th, Daishin Securities published a new report on KEPCO E&C titled "Temporary Earnings Weakness in 2Q26. Now Is the Time to Wait for Momentum," presenting a 'Buy' investment rating and a target price of 160,000 won. Based on the previous day's closing price, the target price implies an upside potential of approximately 57.0% from the current share price.

[Nuclear Power Orders and Projects Are the Key Variables]

The brokerage appears to be placing more weight on potential future momentum from the nuclear power business and new projects rather than KEPCO E&C's short-term earnings trajectory. As KEPCO E&C's main business lies in the design and engineering of nuclear power plants, changes in domestic and overseas nuclear plant orders and the order-receiving environment could act as major variables for its earnings and share price.

Points to watch going forward include whether new orders are won, project progress, and the pace of earnings recovery. In particular, the concretization of new nuclear power projects, expansion of orders, and the speed of earnings improvement are expected to be key variables, while earnings forecasts may also shift depending on domestic and international policy changes surrounding the nuclear power industry and the progress of large-scale projects.

[Target Price Is an 'Estimate'... Investment Decisions Require Caution]

However, it should be noted that a securities firm's target price is an estimate calculated based on future earnings forecasts and industry conditions, and does not mean the share price will actually rise to that level.

[This article was written with AI assistance. This article is not intended to solicit investment in or recommend the purchase or sale of any specific stock. The stock market may experience heightened volatility depending on corporate earnings, order progress, domestic and international economic conditions, and changes in supply and demand. Before making investment decisions, investors should sufficiently review corporate disclosures and business progress, and the final responsibility for investment lies with the investor.]