Hana Securities noted on the 25th that although the stock price of Hyundai Motor has fallen due to tariff impacts, the upward potential is greater from a risk-reward perspective. The target price has been revised down from 280,000 won to 250,000 won, while maintaining an investment opinion of "buy."
Song Seon-jae, a researcher at Hana Securities, said, "This reflects potential profit erosion and increased competition resulting from tariffs imposed in the U.S. market, a key growth driver amid low global demand growth." He added, "With a 25% tariff imposed, we anticipate negative effects starting in the second half, but the intensity may vary depending on the possibility of tariff reductions and Hyundai's response efforts."
Hyundai Motor has recorded sales and operating profit of 44.4 trillion won and 3.63 trillion won, respectively, in the first quarter of this year, meeting market expectations. Researcher Song stated, "The stock price has fallen by more than 20% due to tariff issues, indicating that the upside potential is greater than the downside risk."
He further added, "To respond to U.S. tariffs, we have established a special team, and we plan to execute strategies based on profitability, including optimizing production and sales by base and model, facility investment plans based on investment prioritization and efficiency, cost improvements through production efficiency at two plants in the U.S., localization of parts and logistics, and price and performance bonus policies according to market demand and supply fluctuations."