Goldman Sachs cuts South Korea Kospi target to 9,000
Goldman Sachs just lowered its 12-month forecast for South Korea's Kospi Index from 12,000 to 9,000, after a sharp drop of over 35% since June.
Analyst Timothy Moe points to worries about the AI trade and overall market weakness.
Still, even with this cut, the new target hints at more than 60% upside from current levels.
Kospi cheap, Goldman Sachs sees opportunities
The Kospi is feeling the heat from the sustainability of massive infrastructure spending and rising financing costs in the sector, making it one of the world's cheapest stock markets right now; its price-to-earnings ratio hasn't been this low since 2006.
But Goldman isn't all doom and gloom: it sees promise in sectors like power, industrials, and companies benefiting from domestic reflation or Korean popular culture.
It also thinks semiconductor stocks might be undervalued despite some bleak earnings forecasts ahead.