[Click eStock] Hyundai Motor, Target Price Lowered... Profit Growth Momentum Remains

[Asia Economy Reporter Lee Seon-ae] Korea Investment & Securities announced on the 11th that it is lowering Hyundai Motor's target stock price by 16%, from 310,000 KRW to 260,000 KRW. The closing price on the 8th was 176,500 KRW. This adjustment is entirely due to a multiple adjustment effect.

Jinwoo Kim, a researcher at Hyundai Motor Securities, stated, "Considering the steep profit growth and electric vehicle competitiveness, we previously applied a price-to-earnings ratio (PER) multiple of 12 times, but recently, as the electric vehicle competitiveness shifts from product competitiveness to production capacity, we lowered the PER multiple to 10 times." He added, "Although Hyundai Motor's decision on electric vehicle investment in the U.S. is delayed and the conversion speed of existing plants to electric vehicles is not faster than competitors, the profit growth momentum from market share increase and incentive reduction remains, so we maintain a buy investment opinion."

Operating profit for the first quarter of this year is expected to be 1.7049 trillion KRW, exceeding the consensus by 2%. Considering external adverse factors such as Russia's invasion of Ukraine in February and lockdowns in major Chinese cities in March, which have recently lowered the first-quarter operating profit consensus from the early 1.7 trillion KRW range to the late 1.6 trillion KRW range, this is judged to be a not bad result.

This content was produced with the assistance of AI translation services.