[Click eStock] "Doosan Bobcat, 2Q Earnings Shock and Governance Uncertainty... Target Price and Investment Opinion Downgraded"

Shinhan Investment Corp. announced on the 25th that it is lowering both the target price and investment rating for Doosan Bobcat, reflecting second-quarter earnings shock-level performance and governance uncertainties. The target price was lowered to 50,000 KRW, and the investment rating was downgraded to 'Trading BUY.' Trading BUY is an investment rating given when the expected return is forecasted to be between -10% and 10%.

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Researcher Dongheon Lee stated, "Second-quarter sales amounted to 2.2366 trillion KRW and operating profit was 239.5 billion KRW, which are 13% and 29% below consensus, respectively, representing an earnings shock level," adding, "The delay in interest rate cuts significantly impacted sales decline and cost increases."

Regarding governance, he said, "The delisting process is underway through a stock swap and public tender offer with Doosan Robotics," noting, "The price based on the stock purchase right is below 50,459 KRW." As of the previous day's closing price, Doosan Bobcat's stock was 47,050 KRW.

He further explained, "Although the stock prices of Doosan Enerbility and Doosan Robotics are also declining, the stock purchase right qualification is limited to holders before the board resolution date on July 11," and added, "The key is the shareholders' meeting resolution, which requires approval from more than two-thirds of participating shares."

He continued, "If the stock swap fails, some stock price recovery is expected, but due to industry slowdown and loss of trust, recovery will take time. Even if the stock swap succeeds, there will be a time lag before Robotics' value is supported and synergy is realized," he analyzed.

He also mentioned, "For now, it is difficult to analyze outside of Doosan Bobcat's existing investment strategy," leaving open the possibility by stating, "Coverage exclusion is planned depending on the situation."

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