Goldman Sachs Slashes Kospi Target to 9,000 but Still Sees over 60% Upside
The new target still implies more than 60% upside from current levels, while Goldman said semiconductor valuations and AI spending fears drove the cut.
- On Oct 25, Goldman Sachs strategists lowered their 12-month target for South Korea's benchmark Kospi index to 9,000 from 12,000, a 25% cut reflecting more conservative valuation assumptions as AI-related trade concerns intensify.
- The benchmark has plunged more than 35% from its peak, driven by investors' growing concern about the sustainability of massive infrastructure spending in the chip-making sector, with selling pressure spreading to broader Korean Stocks.
- Analysts led by Timothy Moe estimated current semiconductor valuations imply a 65% earnings decline, a scenario they consider excessively pessimistic; non-memory Stocks remain more than 30% undervalued, The Goldman added.
- South Korea has transformed into the world's cheapest major market, with valuations falling to roughly half of Indonesia's, as Foreign investors recorded $1 billion in outflows, The Goldman reported.
- Despite the downgrade, The Goldman maintained an overweight stance on Korean equities, noting the revised forecast still implies more than 60% upside in power, industrials, corporate governance-related Stocks, and K-culture opportunities.
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11 Articles
Goldman Cuts Kospi 12-Month Target by 25% as AI Trade Unravels
(Seoul = Yonhap News) Reporter Shin Jae-woo = Investment bank Goldman Sachs has lowered its 12-month target for the KOSPI index by 25% from the previous 12,000 to 9,000.
[Digital Daily Reporter Kang Ki-hoon] Global investment bank Goldman Sachs has lowered its 12-month target for the KOSPI from 12,000 to 9,000, a 25% reduction. The firm revised its existing forecast as the domestic stock market plummeted due to concerns regarding the profitability of artificial intelligence (AI) investments. However, the firm assessed that there is still room for an upside of over 60%, noting that current stock prices excessivel…
The strategies of Goldman Sachs Group have reduced the target indicator for South Korea's Kospi index by 25%, against the backdrop of increasing concerns due to problems in the field of artificial intelligence. Goldman Sachs analysts raised the target for the Kospi for the last time in this month and put the prognosis at 12,000, regardless of the prices included in the index becoming cheaper against the backdrop of the global artificial intellig…
Goldman Sachs lowered its 12-month target for South Korea's Kospi index amid deepening concerns about AI investments and an acceleration of sell-offs in technology stocks.
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