Korean Brokerages Cut Emart Target Prices 15.2% on July 12 Amid Starbucks Tank Day Fallout

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According to MoneyToday, four of six Korean brokerages covering Emart cut their target prices on July 12, with the average falling to KRW 121,000, down 15.2% from pre-Q2 earnings levels. Second-quarter operating profit estimates were reduced 19.6% to KRW 61.1 billion, driven primarily by deteriorating margins at SCK Company, Emart's Starbucks operator. SCK Company's operating profit forecast now ranges from a KRW 23 billion loss to KRW 20.3 billion profit, a sharp reversal from the prior KRW 20–44 billion profit estimate before the Tank Day promotion controversy. Analysts cited ongoing prepaid card refunds through June 14 as adding downside risk to second-quarter earnings.
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