Business · Companies · 3 hrs ago
Kiwoom cuts Dong-A ST target price despite stronger profit forecast
Kiwoom Securities expects Dong-A ST's third-quarter profit to exceed market forecasts, although the figures are estimates, not reported results.
The South Korean drugmaker is forecast to post revenue of 209.2 billion won and operating profit of 17.1 billion won.
Growth in prescription medicines and tighter cost control are expected to support profit, while overseas sales are forecast to fall.
Kiwoom cut its target price from 60,000 won to 50,000 won but kept its Buy rating.
The broker said investors want stronger growth from high-margin products and clearer progress in drug development before the shares can recover.
A key test is DA-1726, an obesity drug being developed by US subsidiary Metavia, which is in a high-dose phase 1 trial.
Top-line trial results are expected in the fourth quarter, including data on weight loss and safety as the dose increases.
Kiwoom Securities lowered its target price for Dong-A ST from 60,000 won to 50,000 won while keeping its Buy rating.
The brokerage expects third-quarter operating profit to reach 17.1 billion won, about 62% above the current analyst consensus of 10.6 billion won.
It cited stronger prescription-drug sales and cost control, but said the company lacks the high-margin product growth and drug-development progress investors want.
Kiwoom identified the obesity-drug candidate DA-1726 as a key factor for a potential recovery in the company’s value.
The drug is in a high-dose Phase 1 trial, with top-line results expected in the fourth quarter.
- Who
- Kiwoom Securities analyst Heo Hye-min assessed Dong-A ST.
- What
- Kiwoom cut its target price from 60,000 won to 50,000 won and maintained its Buy rating.
- When
- The report was issued on the 19th, according to the article published on October 18, 2026.
- Where
- Not stated
- Why
- Kiwoom expects stronger-than-consensus third-quarter profit but said investors want clearer growth from high-margin products and drug development.
This story does not have two clearly opposing sides.
Kiwoom Securities cut its target price for Dong-A ST from 60,000 won to 50,000 won and maintained its Buy rating.
Dong-A ST subsidiary MetaVia is conducting Part 3 of a high-dose Phase 1 trial of the obesity treatment candidate DA-1726.
Top-line results from the DA-1726 trial are expected.
- Revised target price
- 50,000 won, down from 60,000 won
- Rating
- Buy maintained
- Estimated third-quarter sales
- 209.2 billion won
- Estimated third-quarter operating profit
- 17.1 billion won, about 62% above consensus
- DA-1726 trial
- High-dose Phase 1, Part 3; top-line results expected in the fourth quarter
1 source
What people are saying
The stock market wants the company to secure high-margin products that can drive growth and to gain visibility on R&D momentum.
Despite solid results emphasizing cost efficiency, growth in high-margin products and concrete progress in new-drug development are needed for a full re-rating of the stock.