EcoPro shares fall for second day on sell recommendations

The monitor at Korea Exchange (KRX) shows shares of EcoPro, EcoPro BM and EcoPro HN. [Photo by Kim Ho-young]

Shares of EcoPro Co. declined for a second day in early trading on Thursday, as brokerages downgraded their recommendations on the stock to sell.

As of 2:07 p.m. Thursday, shares of EcoPro fell 1.6 percent, after falling by as much as 10 percent in the morning, to 630,000 won ($479.64). EcoPro shares plunged 16.78 percent on Wednesday.

EcoPro’s stock has been on the rise even though analysts have warned the rise has been excessive.

Hana Financial Investment Co. raised its price target on EcoPro to 454,000 won on Wednesday, while lowering its recommendation to sell from buy. The price target is well below the current share price.

“EcoPro’s current market capitalization has already exceeded its expected enterprise value five years from now, making it difficult to view the stock as a good buy at this point,” Hana Financial Investment analyst Kim Hyun-soo said in a report.

Earlier, Samsung Securities Co. lowered its recommendation on EcoPro to hold from buy.

At the same time on Thursday, EcoPro BM share fell 2.9 percent.