KB Securities said on the 13th that Doosan Enerbility is expected to grow on the back of benefits from U.S. nuclear power plant construction and gas turbine orders. It maintained a Buy rating and raised the target price to 135,000 won from 116,000 won. Doosan Enerbility's closing price in the previous session was 103,500 won.
KB Securities analyzed that as nuclear power plant construction in the United States begins in earnest this year, Doosan Enerbility will benefit.
Jeong Hye-jeong, an analyst at KB Securities, said, "Large nuclear power plant orders, the biggest growth driver for Doosan Enerbility, are expected to start showing up in results as the U.S. nuclear power construction cycle begins in earnest this year."
Investment funds related to nuclear power plant construction in the United States are also being secured in earnest. Jeong said, "The U.S. Department of Energy invested $80 billion in Westinghouse, enough to build eight nuclear power plants, and state governments such as Texas are also increasing support policies for nuclear power," adding, "It secured investment from Japan for U.S. nuclear power construction and is urging Korea to make related investments as well."
Gas turbine orders are also expanding, providing growth momentum. Jeong said, "Following five units last year, Doosan Enerbility won orders in March for seven gas turbines from U.S. big tech corporations," adding, "Including three additional units ordered domestically, the current gas turbine order backlog has expanded to 19 units."
Early projects for small modular reactors (SMRs) are also showing results. Jeong said, "NuScale Power completed the final investment decision (FID) for the Romania project and, after validation of the first module, plans to begin operations gradually," adding, "TerraPower also obtained a construction permit from the U.S. Nuclear Regulatory Commission (NRC) and will begin construction of the core reactor."