231 out of 233 KOSPI stocks are trading below analyst price targets as of the 3rd, according to FnGuide data released on the 7th. The gap widened as investor funds concentrated in AI semiconductors and policy-related stocks, leaving biotech and battery sectors underperforming market expectations. Among stocks with target prices set by three or more securities firms over the recent three months, 136 stocks showed gaps exceeding 50%. The divergence reflects the Korean stock market's lack of clear direction amid repeated fluctuations, with only LG Electronics and SK Networks trading above their targets.
Biotech Stocks Show Widest Gaps Below Analyst Targets
Major pharmaceutical companies recorded significant gaps between current prices and analyst targets. Yuhan Corporation, one of Korea's five largest pharmaceutical companies, showed a gap of 88.2% below its target price. SK Biopharm recorded a 71.3% gap, while Hanmi Pharmaceutical stood at 54.0% below target.
Large-cap biotech stocks also underperformed expectations. Celltrion's current price sat 48.6% below its target, and Samsung Biologics showed a 46.2% gap. Traditional pharmaceutical stocks demonstrated even wider divergences: Daewon Pharmaceutical (94.1%), Dong-A Socio Holdings (90.8%), Green Cross (73.0%), Daewoong Pharmaceutical (67.1%), and Chong Kun Dang (57.7%).
Heo Hye-min, a researcher at Kiwoom Securities, stated that the pharmaceutical and biotech sector experienced severe supply neglect in the first half of the year and showed the weakest performance among major countries' MSCI Healthcare Index returns. Heo noted that a trend reversal requires both reduced fund concentration and proof of global competitiveness.
Battery Sector Stocks Trade Far Below Price Targets Despite EV Recovery
Secondary battery companies showed similar underperformance patterns. L&F, a cathode material manufacturer, recorded the highest gap at 135.5% below its target price among surveyed large-cap stocks. POSCO Holdings showed an 81.3% gap, Samsung SDI 76.0%, POSCO Future M 69.1%, LG Chem 62.7%, LG Energy Solution 62.5%, and SK IE Technology 60.1%.
Despite significant price corrections over the recent month, global EV sales and battery shipment volumes showed strong performance. Analysis indicates that the EV chasm—a temporary demand slowdown—is entering a mitigation phase, though improved earnings expectations for major companies have not yet been sufficiently reflected in stock prices.
Analysts Attribute Underperformance to Fund Concentration in AI Semiconductors
Market observers note that while biotech sector fundamentals including technology exports and new drug development remain valid, investor attention has concentrated on AI semiconductors and policy-beneficiary sectors.
Jang Jung-hoon, a researcher at Samsung Securities, stated that during June, Korea's secondary battery stock returns were -19%, continuing to underperform compared to Chinese companies at -4%. Jang recommended focusing on ESS-related stocks expecting positive industry conditions from second-half customer orders and capacity expansion, as well as companies operating in semiconductor materials.
Only two KOSPI-listed companies recorded negative gaps: LG Electronics at -8.9% and SK Networks at -2.2%, indicating their current prices exceeded analyst targets.
FAQ
What percentage of KOSPI stocks are trading below analyst targets as of the 3rd?
231 out of 233 KOSPI stocks (99.1%) with target prices from three or more securities firms are trading below their analyst targets as of the 3rd, according to FnGuide data released on the 7th.
Which Korean biotech stock shows the largest gap below its price target?
Yuhan Corporation shows the largest gap among major pharmaceutical companies at 88.2% below its analyst target price, followed by SK Biopharm at 71.3% and Hanmi Pharmaceutical at 54.0%.
Why are battery sector stocks underperforming despite EV recovery signs?
Analysts attribute the underperformance to investor fund concentration in AI semiconductors and policy-related stocks, though global EV sales and battery shipment volumes have shown strong performance and the EV chasm is entering a mitigation phase.
