Macquarie downgraded Korea Electric Power Corp. (KEPCO) to Neutral from Outperform.
The price target was slashed to KRW40,000 from KRW73,000. Shares have fallen 8.9% over the past week.
Operating profit missed Macquarie's estimate by 16%, driven by higher purchased electricity costs and weaker industrial demand.
Industrial electricity sales declined 2% year-over-year. Operating profit margin stood at 15.5% versus an estimate of 18.2%.
Macquarie raised its second-half 2026 system marginal price forecast to KRW147 per kWh from KRW102 per kWh.
Higher oil prices are expected to weigh on earnings from Q3 2025.
