FINWIRES · TerminalLIVE
FINWIRES

Research Alert: CFRA Maintains Buy Opinion On Shares Of Korea Electric Power Corp.

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We revised our 12-month target price to USD20 (from USD26), reflecting a 2026 forward P/E 3.7x, below its five-year average P/E of 4.8x, which is justified in our view by potential fluctuations in fuel costs. KEPCO's Q1 2026 revenue grew 0.8% Y/Y to KRW24.4 trillion, while operating profit was up 0.8% Y/Y to KRW3.78 trillion, but below consensus' estimates. Electricity sales volume declined by 0.9% Y/Y to 139.7 TWh. Still, the average selling price per kWh remained stable at KRW 170.4, matching the level seen at the end of 2025. KEPCO managed to offset rising fuel costs through aggressive internal cost-cutting and emergency management, but it sees a possibility that rising international fuel prices and exchange rates due to the Middle East war will act as a burden in H2 2026. We think there has been a fundamental shift in KEPCO's energy mix towards nuclear-heavy weighting, which may help it to improve margins. Maintain Buy.

Related Articles

Research

Research Alert: CFRA Retains Buy Opinion On Shares Of Atmos Energy Corporation

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We trim our 12-month target by $1 to $204, 22.7x our next-12-month EPS estimate of $9.00, a premium to peers and above ATO's five-year historical forward average of 19.1x given our positive fundamental outlook for gas utilities and supportive customer growth trends in ATO's service territory. ATO's guidance update exceeded our expectations, raising its FY 26 EPS guidance to an $8.45 midpoint, up from the prior $8.25 midpoint. We lift our FY 26 EPS estimate by $0.27 to $8.52, above the guidance midpoint given ATO's track record of exceeding targets. We also lift FY 27 EPS by $0.25 to $9.08. Our expectation of rising gas demand in Texas is actively playing out, with the company adding over 51,000 new customers in the last 12 months (39,000+ in Texas alone), including 800 commercial and four industrial customers in Q2 alone. Customer growth supports gas distribution volumes and can create additional opportunities for capital investment and subsequent rate increases, in our view.

$ATO
Research

Franco-Nevada Upgraded to Outperform at National Bank After Q1 Results; Price Target Raised to C$420

National Bank Financial on Wednesday upgraded its rating on the shares of Franco-Nevada (FNV.TO, FNV) to outperform from sector perform while raising its price target to C$420 from C$410 following the royalty company's first-quarter results."We have incorporated Q1 financials and modified some assets to better align with operator guidance. We continue to see improving momentum throughout H2 on progressing towards resumption of production from Cobre Panama, significant tailwinds from elevated oil & gas prices, improved option value given its large-scale portfolio, and a more compelling valuation relative to peers," analyst Shane Nagle wrote. .(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $331.68, Change: $+6.04, Percent Change: +1.85%

$FNV$FNV.TO
Research

Research Alert: CFRA Keeps Hold Rating On Shares Of Paramount Resources Ltd.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We maintain our Hold rating and increase our target price to CAD34 from CAD31. This was based on an expanded multiple (7.2x vs. 6.8x) and better expected EBITDA margins in 2027. Multiple production guidance increases over the last two quarters suggest Paramount Resources (POU) will continue to execute through its significant investment cycle during 2027. Production guidance for 2026 was raised to 48,000-52,000 boe/d (50% liquids) from the prior 46,000-51,000 boe/d range, due to well performance and an earlier Alhambra phase 2 start-up, while the company reduced its 2026 capital expenditure guidance by CAD50M to CAD1,000M-CAD1,100M. We think this level of execution justifies our premium multiple of 7.2x vs. the long-term average of 4.7x. The recent ARX deal also adds a takeout premium to Western Canadian gas players, which POU may benefit from as the energy crisis drags on. We raise our 2026 EPS forecast to CAD1.10 from CAD0.85 and lower our 2027 EPS forecast to CAD1.09 from CAD1.22.

$POU