Mirae Asset Securities on the 6th said expectations for earnings growth are rising as APR's results begin in earnest through entry into major Western European countries' Amazon in March. The firm raised its target price to 450,000 won from 360,000 won and maintained a buy rating. APR's previous trading day closing price was 283,000 won.
Mirae Asset Securities estimated APR's revenue this year at 2.3 trillion won, up 50% from a year earlier. This includes 70 billion won from the Europe online segment and 150 billion won from the U.S. offline segment.
Baesong-i, a researcher at Mirae Asset Securities, said, "APR is entering a phase where the possibility of an "earnings surprise" is rising again," adding, "Because it will begin in earnest to enter new growth regions such as Europe online and U.S. offline channels within the first half."
In particular, Bae noted that for Europe online, only Amazon in the United Kingdom is currently in operation, and although they are not engaging in especially aggressive marketing, awareness built in the United States is spreading and the brand is recording top-tier rankings.
Bae explained, "As of the first quarter this year, logistics have normalized and production issues have been fully resolved through manufacturer capacity expansions, and results will begin growing in earnest this month through entry into Amazon in major Western European countries."
In addition, for U.S. offline channels, fourth-quarter quarterly sales alone were about 24 billion won. Bae said, "At Ulta, the number of stock-keeping units (SKUs) will increase from 10 to 15, and additional channel entries are likely within the first half, leaving significant upside open."
He added, "These momentum drivers are just about to become visible, and with the valuation appealing, now is judged to be a good time to buy."