UBS Upgrades Posco to Buy, Highlights Lithium Assets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 27 2026
0mins
Should l Buy PKX?
Source: seekingalpha
- Rating Upgrade: UBS upgraded Posco from Neutral to Buy, reflecting a constructive outlook on the company's lithium assets, particularly the Argentina operation, which is expected to benefit from a bullish lithium price forecast.
- Strategic Partnership: The analyst views Posco's joint venture with JSW to build a blast furnace in India as a positive strategic move, given India's long-term structural steel demand growth; while the share price has begun to react, these factors are not fully reflected yet.
- Battery Materials Valuation Increase: UBS raised the valuation of Posco's rechargeable battery materials division from $6.4 billion to $9.4 billion, reflecting strong EV and ESS demand, with U.S. BESS demand expected to triple by 2030, and Korean battery makers capturing 85% of this demand.
- Short-Term Outlook: The analyst expects Posco's Q1 results to miss market expectations, with FY 2Q26 likely to remain challenging, but believes any resulting share price correction could present an attractive opportunity to accumulate the stock.
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Analyst Views on PKX
About PKX
Posco Holdings Inc is a Korea-based holding company primarily engaged in the manufacturing and sale of steel products. The Company operates its business through four segments. The Steel Business segment mainly manufactures and sells hot-rolled steel, cold-rolled steel, stainless steel, and other steel products. The Infrastructure Business segment engages in trading businesses involving steel, metals, chemicals, materials, and energy, as well as construction businesses such as building construction and plant construction, and logistics services. The Secondary Battery Materials Business segment engages in businesses related to electric vehicle (EV) battery materials, including lithium, nickel, cathode materials, anode materials, and recycling. The Other Business segment is engaged in power plant operations, information and communications-related services, as well as investments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Posco Future M Reports Significant Drop in Q1 Net Income
- Net Income Decline: Posco Future M reported a significant drop in net income for Q1 2026, falling to KRW 2.66 billion from KRW 49.06 billion in the previous year, indicating severe challenges in profitability.
- Operating Income Increase: Despite the decline in net income, operating income increased slightly from KRW 17.15 billion to KRW 17.70 billion, suggesting improvements in cost control and operational efficiency.
- Sales Decrease: The company's sales fell sharply from KRW 845.39 billion to KRW 757.52 billion, a decline of over 10%, reflecting weak market demand negatively impacting performance.
- Stock Price Fluctuation: Posco Future M's stock price decreased by 3.45% to KRW 252,000 on the Korean Stock Exchange, raising concerns among investors about the company's future performance and potentially affecting market confidence.
See More
POSCO Holdings Reports Q1 Net Income Growth
- Net Income Growth: POSCO Holdings reported a first-quarter net income attributable to shareholders of 467 billion Korean won, a 54.6% increase from 302 billion won last year, indicating a significant improvement in profitability.
- Operating Income Increase: The operating income rose to 707 billion Korean won from 568 billion won, marking a 24.5% increase, which reflects the company's strong performance amid recovering market demand.
- Sales Growth: First-quarter sales reached 17.88 trillion Korean won, up 2.5% from 17.44 trillion won last year, demonstrating stable sales performance despite a limited growth rate in a competitive market.
- Stock Price Fluctuation: Despite the positive earnings report, POSCO Holdings shares are trading at 460,000 Korean won, down 1.92%, which may reflect market uncertainties regarding the future economic environment.
See More
POSCO Holdings Files 2025 Annual Report
- Annual Report Filing: On April 29, 2026, POSCO Holdings submitted its Form 20-F Annual Report for the year ended December 31, 2025, demonstrating the company's ongoing commitment to transparency and compliance.
- Report Access: Investors can download the 2025 Annual Report from both www.posco-inc.com and the U.S. Securities and Exchange Commission's website at www.sec.gov, ensuring broad accessibility of information.
- Free Hard Copies: The company also offers free hard copies of the 2025 Annual Report, which investors can request via a designated email, further enhancing engagement with stakeholders.
- Transparency Commitment: The filing of this annual report not only meets regulatory requirements but also reflects POSCO Holdings' dedication to investor relations, aiming to boost market trust and enhance the company's reputation.
See More
UBS Upgrades Posco to Buy, Highlights Lithium Assets
- Rating Upgrade: UBS upgraded Posco from Neutral to Buy, reflecting a constructive outlook on the company's lithium assets, particularly the Argentina operation, which is expected to benefit from a bullish lithium price forecast.
- Strategic Partnership: The analyst views Posco's joint venture with JSW to build a blast furnace in India as a positive strategic move, given India's long-term structural steel demand growth; while the share price has begun to react, these factors are not fully reflected yet.
- Battery Materials Valuation Increase: UBS raised the valuation of Posco's rechargeable battery materials division from $6.4 billion to $9.4 billion, reflecting strong EV and ESS demand, with U.S. BESS demand expected to triple by 2030, and Korean battery makers capturing 85% of this demand.
- Short-Term Outlook: The analyst expects Posco's Q1 results to miss market expectations, with FY 2Q26 likely to remain challenging, but believes any resulting share price correction could present an attractive opportunity to accumulate the stock.
See More
South Korea and India Aim for $50 Billion Trade Partnership
- Bilateral Trade Goals: Indian PM Modi and South Korean President Lee reaffirmed the target to boost bilateral trade to $50 billion by 2030, despite a mere 3% annual growth since 2018, highlighting the challenges and unrealized potential in achieving this goal.
- Investment Opportunities and Challenges: South Korean firms face practical challenges in India, including policy unpredictability and infrastructure delays, although POSCO plans to establish a joint venture steel plant with JSW Steel capable of producing 6 million tons annually, expected to be operational by 2031.
- Shipbuilding Cooperation: Progress on collaboration between HD Korea Shipbuilding and Cochin Shipyard has been slow, with no formal investment commitments yet, despite shipbuilding being a key focus for the Modi government, indicating uncertainty in partnership execution.
- Foreign Investment Landscape: South Korea's cumulative FDI in India from April 2000 to March 2025 stands at just $6.69 billion, significantly lower than Singapore's $174.89 billion, reflecting that despite substantial strategic interest, Korean M&A activity in India remains relatively modest.
See More
Steel Sector Earnings Outlook Improves Ahead of Reports
- Earnings Season Kickoff: Cleveland-Cliffs opened the first-quarter earnings season for the steel sector early Monday, signaling an improved outlook that may set the stage for subsequent company performances.
- STLD and Nucor Breakout: During Monday's regular session, Steel Dynamics (STLD) and Nucor stocks showed strong performance, reflecting market optimism about the steel industry's recovery, which could bolster investor confidence.
- Tariff Boost: Steel Dynamics' Q1 results revealed a significant surge in earnings, largely attributed to tariffs implemented by the Trump administration, providing the company with a competitive edge and enhancing profit margins.
- Positive Market Reaction: As the overall earnings outlook for the steel sector improves, investor interest in related stocks is increasing, potentially leading to capital inflows and further stock price appreciation, thereby invigorating the market.
See More
Posco Future M Reports Significant Drop in Q1 Net Income
- Net Income Decline: Posco Future M reported a significant drop in net income for Q1 2026, falling to KRW 2.66 billion from KRW 49.06 billion in the previous year, indicating severe challenges in profitability.
- Operating Income Increase: Despite the decline in net income, operating income increased slightly from KRW 17.15 billion to KRW 17.70 billion, suggesting improvements in cost control and operational efficiency.
- Sales Decrease: The company's sales fell sharply from KRW 845.39 billion to KRW 757.52 billion, a decline of over 10%, reflecting weak market demand negatively impacting performance.
- Stock Price Fluctuation: Posco Future M's stock price decreased by 3.45% to KRW 252,000 on the Korean Stock Exchange, raising concerns among investors about the company's future performance and potentially affecting market confidence.
See More
POSCO Holdings Reports Q1 Net Income Growth
- Net Income Growth: POSCO Holdings reported a first-quarter net income attributable to shareholders of 467 billion Korean won, a 54.6% increase from 302 billion won last year, indicating a significant improvement in profitability.
- Operating Income Increase: The operating income rose to 707 billion Korean won from 568 billion won, marking a 24.5% increase, which reflects the company's strong performance amid recovering market demand.
- Sales Growth: First-quarter sales reached 17.88 trillion Korean won, up 2.5% from 17.44 trillion won last year, demonstrating stable sales performance despite a limited growth rate in a competitive market.
- Stock Price Fluctuation: Despite the positive earnings report, POSCO Holdings shares are trading at 460,000 Korean won, down 1.92%, which may reflect market uncertainties regarding the future economic environment.
See More
POSCO Holdings Files 2025 Annual Report
- Annual Report Filing: On April 29, 2026, POSCO Holdings submitted its Form 20-F Annual Report for the year ended December 31, 2025, demonstrating the company's ongoing commitment to transparency and compliance.
- Report Access: Investors can download the 2025 Annual Report from both www.posco-inc.com and the U.S. Securities and Exchange Commission's website at www.sec.gov, ensuring broad accessibility of information.
- Free Hard Copies: The company also offers free hard copies of the 2025 Annual Report, which investors can request via a designated email, further enhancing engagement with stakeholders.
- Transparency Commitment: The filing of this annual report not only meets regulatory requirements but also reflects POSCO Holdings' dedication to investor relations, aiming to boost market trust and enhance the company's reputation.
See More
UBS Upgrades Posco to Buy, Highlights Lithium Assets
- Rating Upgrade: UBS upgraded Posco from Neutral to Buy, reflecting a constructive outlook on the company's lithium assets, particularly the Argentina operation, which is expected to benefit from a bullish lithium price forecast.
- Strategic Partnership: The analyst views Posco's joint venture with JSW to build a blast furnace in India as a positive strategic move, given India's long-term structural steel demand growth; while the share price has begun to react, these factors are not fully reflected yet.
- Battery Materials Valuation Increase: UBS raised the valuation of Posco's rechargeable battery materials division from $6.4 billion to $9.4 billion, reflecting strong EV and ESS demand, with U.S. BESS demand expected to triple by 2030, and Korean battery makers capturing 85% of this demand.
- Short-Term Outlook: The analyst expects Posco's Q1 results to miss market expectations, with FY 2Q26 likely to remain challenging, but believes any resulting share price correction could present an attractive opportunity to accumulate the stock.
See More
South Korea and India Aim for $50 Billion Trade Partnership
- Bilateral Trade Goals: Indian PM Modi and South Korean President Lee reaffirmed the target to boost bilateral trade to $50 billion by 2030, despite a mere 3% annual growth since 2018, highlighting the challenges and unrealized potential in achieving this goal.
- Investment Opportunities and Challenges: South Korean firms face practical challenges in India, including policy unpredictability and infrastructure delays, although POSCO plans to establish a joint venture steel plant with JSW Steel capable of producing 6 million tons annually, expected to be operational by 2031.
- Shipbuilding Cooperation: Progress on collaboration between HD Korea Shipbuilding and Cochin Shipyard has been slow, with no formal investment commitments yet, despite shipbuilding being a key focus for the Modi government, indicating uncertainty in partnership execution.
- Foreign Investment Landscape: South Korea's cumulative FDI in India from April 2000 to March 2025 stands at just $6.69 billion, significantly lower than Singapore's $174.89 billion, reflecting that despite substantial strategic interest, Korean M&A activity in India remains relatively modest.
See More
Steel Sector Earnings Outlook Improves Ahead of Reports
- Earnings Season Kickoff: Cleveland-Cliffs opened the first-quarter earnings season for the steel sector early Monday, signaling an improved outlook that may set the stage for subsequent company performances.
- STLD and Nucor Breakout: During Monday's regular session, Steel Dynamics (STLD) and Nucor stocks showed strong performance, reflecting market optimism about the steel industry's recovery, which could bolster investor confidence.
- Tariff Boost: Steel Dynamics' Q1 results revealed a significant surge in earnings, largely attributed to tariffs implemented by the Trump administration, providing the company with a competitive edge and enhancing profit margins.
- Positive Market Reaction: As the overall earnings outlook for the steel sector improves, investor interest in related stocks is increasing, potentially leading to capital inflows and further stock price appreciation, thereby invigorating the market.
See More
