Coway seen on stable growth track: analyst

[THE INVESTOR] Samsung Securities maintained its buy rating and price target of 135,000 won (US$114.31) for Coway, a Korean water purifier maker, recommending the stock as an investment alternative with stable returns amid growing uncertainty in the market.

“Coway has been enjoying stable growth based on its overwhelming market dominance and unique business model,” said Park Eun-kyung, an analyst at Samsung Securities. 

She expects Coway’s second-quarter sales to rise 15 percent on-year to 637.8 billion won and operating profit to surge 19 percent to 131.3 billion won.

In May, the company signed a memorandum of understanding with Chinese appliance maker Haier, outlining cooperation for sales in China, but the positive event has been fully reflected in the stock price, she said.

By Park Han-na (hnpark@heraldcorp.com)