S-Oil Target Price Raised as Oil and Refining Margin Volatility Looms

Shinhan Investment Securities raised its target price for S-Oil, analyzing that volatility in international oil prices and refining margins will remain unavoidable even after the war ends. The view reflects the structure of the refining business, where earnings are highly sensitive to crude price trends and product-specific margins. An end to the war may ease supply concerns, but it does not mean oil prices and refining margins will become fixed or stable. For S-Oil, future oil-price direction, the scale of margin swings, and the durability of refining conditions remain the key variables for investors. Source: hankyung.com.