REAL-TIME GLOBAL RESEARCH
Risk Reward Update
Research evidence excerpt
Not for redistribution without written consent of Morgan Stanley
M
Update
August 7, 2026 03:03 PM GMT
Morgan Stanley & Co. International plc, Seoul Branch+
GS Retail Co Ltd | Asia Pacific
Kelly H Kim, CFA
Equity Analyst
Risk Reward Update
What’s Changed
GS Retail Co Ltd (007070.KS)
From
To
Price Target
W21,500
W24,000
Bull Case
W29,000
W32,000
Base Case
W21,500
W24,000
Bear Case
W17,000
W19,000
Updated Components
EPS
Investment Thesis
Bull Base Bear Scenarios
Risk Reward for GS Retail Co Ltd (007070.KS) has been
updated.
Reason for change
Incorporating 2Q26 results, we have raised our EPS estimates by 5-9% for 2026-28.
GS Retail Co Ltd (007070.KS, 007070 KP)
S. Korea Consumer | S. Korea
Stock Rating
Industry View
Price target
Shr price, close (Aug 7, 2026)
52-Week Range
Underweight
In-Line
W24,000
W28,350
W29,950-15,950
Fiscal Year Ending
12/25 12/26e 12/27e 12/28e
EPS (W)**
Prior EPS (W)**
ModelWare EPS (W)
Prior ModelWare EPS
(W)
1,586
519
2,392
2,185
2,392
2,185
2,635
2,439
2,635
2,439
2,762
2,630
2,762
2,630
Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare
framework
** = Based on consensus methodology
e = Morgan Stanley Research estimates
• Both CVS and supermarket posted stronger SSSG than our expectation
during 2Q26, which pushes our sales assumptions up by 1-2%.
• We also reflect high operating leverage effect from stable opex trend and
improving other affiliates' earnings.
• We lifted up our payout ratio assumption slightly to over 40% during the
period (was 35-40%) as the company emphasized shareholder return
improvement.
Coupled with these changes, our price target increases to W24,000 from W21,500
(up 12%).
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