Local analysts are under fire for failing to foresee a plunge in the share prices of Hanjin Shipping.

On Monday, Hanjin shares plummeted by the daily limit of 29.94 percent after company applied for a creditor-led debt restructuring. Two days later, share prices closed at 1,900 won, down to just over half of their value on Jan. 4, when they were trading at 3,540 won. 

Individual investors claim that the brokerages failed in their jobs, as none of the brokerage reports issued this year had a sell position on Hanjin Shipping, according to financial data provider FN Guide.

Kiwoom Securities said in a report on April 8 that Hanjin Shipping’s shares were expected to outperform Seoul’s main bourse by 10-20 percent in the next six months. The brokerage set the target price at 3,500 won, citing an expected rebound in shipping rates in the third quarter.

KTB Investment & Securities set the target price of Hanjin Shipping at 4,000 won in April 1 report.

According to financial data provider Wise FN, only 0.1 percent or 23 reports expressed sell opinions out of the total of 28,702 reports released from March 2014 to March 2015. Reports with buy recommendations took up 86.6 percent, and those with strong buy, 3.6 percent.

By Kim Yoon-mi (yoonmi@heraldcorp.com)