KT Corporation downgraded to Neutral from Buy at Nomura

Nomura analyst Angela Hong downgraded KT Corporation to Neutral from Buy with a price target of KRW 36,000, down from KRW 46,000. The company posted solid earnings growth in Q4, partly due to cost control and the successful diversification of the business portfolio over the past three years, the analyst tells investors in a research note. However, the firm says such moves, particularly cost control, will likely stop for a while in 2023, regardless of the outcome of a management reshuffle. It now sees limited upside in KT’s earnings growth and dividend.