Nomura Securities raised this year's KOSPI peak target to 11,000.
On the 21st, according to the financial investment industry, Nomura Securities recently raised this year's KOSPI target from the previous 7,500–8,000 to 10,000–11,000 in a report.
Nomura Securities said it raised the target to reflect improved earnings at corporations and an upswing cycle centered on return on equity (ROE).
As the markets for commodity memory and high bandwidth memory (HBM) enter a supercycle, they are expected to become the key drivers of KOSPI earnings growth this year and next.
It projected stable profitability over the next five years in artificial intelligence (AI) infrastructure areas such as memory/HBM, power equipment, energy storage systems (ESS), and nuclear power.
It also noted that as listed companies shift their management strategies toward boosting capital efficiency and expanding shareholder returns, the price-earnings ratio (PER) and price-to-book ratio (PBR) are likely to be re-rated.
Nomura Securities viewed the defense industry and the auto industry as promising. For the defense industry, it assessed that increased defense demand is expected to benefit from heightened global geopolitical tensions. For the auto industry, it analyzed that the sector is shifting toward industries centered on autonomous driving and physical AI platforms.
Nomura Securities presented target prices for major domestic corporations as 4 million won for SK hynix, 590,000 won for Samsung Electronics, 240,000 won for Kia, and 900,000 won for Samsung SDI.