BofA Securities downgraded KT Corp. (030200:KS) (NYSE:KT) to Neutral from Buy and cut its price target to KRW66,000 from KRW70,000.
Despite the downgrade, the stock trades at a P/E of 8.34. Bond.az analysis suggests it remains undervalued with a fair value of $28.49, versus the current $20.41.
The downgrade reflects slower earnings growth expected in 2026. Parent operating profit is projected at KRW1.46 trillion, down 4% year-over-year.
Increased marketing and labor costs, along with slower wireless revenue growth, are key factors.
KT Corp. offers a dividend yield of 3.27% and has paid dividends for 12 consecutive years.
