[Click eStock] "Hyundai AutoEver, Investment Rating Downgraded from 'Buy' to 'Hold'"

Yuanta Securities downgraded its investment rating on Hyundai AutoEver to 'Hold' on the 15th. However, reflecting the recent sharp rise in the stock price, the target price was raised from 140,000 KRW to 200,000 KRW.

Hyundai AutoEver is expected to record sales of 853 billion KRW and an operating profit of 5.88 billion KRW in the third quarter. These figures represent increases of 16.8% and 58.8%, respectively, compared to the same period last year. Due to the digital transformation of the Hyundai Motor Group, all business sectors achieved sales growth beyond expectations, resulting in net income attributable to controlling interests surprising for five consecutive quarters. Accordingly, the annual performance consensus for this year and next year is also on an upward trend.

However, it is judged that the recent excessive surge in the stock price has already reflected a significant portion of growth expectations. Hyundai AutoEver's stock price closed at 193,000 KRW the previous day, more than doubling since the beginning of the year. In particular, it surged sharply in a short period since the end of June, reaching as high as 263,000 KRW on the 12th.

Jang Yoon-seok, a researcher at Yuanta Securities, said, "For re-rating, it is essential to realize profit growth beyond market expectations, but the point at which new businesses such as vehicle software verification and smart factory solutions will significantly contribute to profits is expected to be after the operation of Hyundai Motor and Kia's new plants in 2025." He added, "Considering the valuation burden at the current stock price level, we adjust the investment rating to HOLD."

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