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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] KB Securities forecasts that Hyundai Motor Company will deliver better-than-expected results in the second quarter of this year, prompting them to raise their target price from KRW 310,000 to KRW 340,000, maintaining a 'buy' rating.
According to KB Securities, they stated, "Reflecting better-than-expected sales volumes, segment mix, and favorable exchange rates, we have raised our 2024 and 2025 operating profit forecasts by 10.9% and 8.0% respectively, and increased our target price."
They continued, "Expectations for HMI (India subsidiary) listing and shareholder return policies, favorable exchange rate environment, and forecast of historically high levels of operating profit highlight Hyundai Motor's key investment points. However, with a 36.9% increase in share price since the beginning of 2024, the upside potential is gradually diminishing."
KB Securities projects Hyundai Motor's operating profit for the second quarter to be around KRW 4.2096 trillion, a 0.5% increase from the same period last year.
Additionally, they commented, "For 2024, Hyundai Motor is expected to achieve an operating profit of KRW 14.5039 trillion, a 4.1% decrease from the previous year's forecast of KRW 13.810 trillion. We have revised up our previous forecast by 10.9% to KRW 12.7580 trillion for 2025 operating profit."
These adjustments reflect KB Securities' positive outlook on Hyundai Motor's performance driven by robust sales, favorable segment mix, and strategic initiatives including potential listing of HMI and shareholder-friendly policies.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
