[Click eStock] "Doosan Bobcat Shows Solid Performance in Q1... Focus on Growth"

[Asia Economy Reporter Kwon Jae-hee] Daishin Securities maintained a 'Buy' rating on Doosan Bobcat on the 24th, setting a target price of 55,000 KRW.

Daishin Securities forecasted that Doosan Bobcat's performance in the first quarter of this year would be better than expected. This is due to the continued strong demand for small construction equipment in North America and the company's active price increases offsetting supply chain disruptions.

Lee Dong-heon, a researcher at Daishin Securities, stated, "Doosan Bobcat implemented price increases earlier this year, with a 10% rise in the Americas and 5-6% in Europe, applied with a time lag, so the effect is expected to be greater in the second half of the year. The strong market demand and sufficient factors for price increases due to rising raw material costs are also positive factors."

In particular, the North American market is showing stronger-than-expected growth, and the impact of interest rate hikes is minimal. Infrastructure investment this year is expected to offset these effects.

The researcher added, "While the industrial sector overall is experiencing cost increases due to temporary demand declines in Europe related to the Ukraine war, Doosan Bobcat is expected to show rare favorable performance in the first quarter of this year. It is important to focus on growth this year rather than the impact of interest rate hikes."

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