iM Securities raises Doosan goals with bet on AI demand and governance

January 26th (Asia Today) — iM Securities said on Monday that it expects Doosan’s earnings improvement to continue as sales accelerate due to rising demand related to artificial intelligence and investor expectations over South Korea’s commercial law reforms also rise.

The brokerage maintained its buy rating and raised Doosan’s price target to 1.2 million won ($830), according to analyst Lee Sang-heon.

Lee said that Doosan’s electronics business group is seeing steady growth in demand for AI accelerators and 800G communication products. He said that AI-related orders, especially from customers in North America, continue to support sales of existing products and that the effects of next-generation products are beginning to show.

Lee predicted fourth-quarter sales of 585.3 billion won ($405 million) and operating profit of 142.5 billion won ($98 million), both significantly higher than the same period last year. He said performance was driven by AI demand despite seasonal weakness, mobile product destocking and year-end one-time charges.

Lee predicted internal business sales of 2.4986 trillion won ($1.73 billion) and operating profit of 646.6 billion won ($447 million) this year, and said the improving trend should continue as demand for AI increases structurally.

Lee also said that changes to the Commercial Code, including stronger fiduciary duties for directors and changes to the audit committee appointment system, could reduce the discounts investors are applying to holding companies. He said expectations for improved corporate governance will increase the likelihood that Doosan’s corporate value will be reassessed.

— Asia Today reported. Translation by UPI

© Asia Today. Unauthorized reproduction and redistribution is prohibited.

Korea original report: https://www.asiatoday.co.kr/kn/view.php?key=20260126010011842