Samsung Securities assessed that Doosan Bobcat recorded results generally in line with market expectations despite the deteriorating operating environment. Accordingly, the investment opinion is maintained as 'buy,' and the target price has been raised by 22.9% from the previous 54,500 won to 67,000 won.
According to Samsung Securities, Doosan Bobcat's operating profit for the second quarter of this year was 204.2 billion won. Analyst Han Young-soo noted, "Currently, uncertainties related to tariffs and policies are delaying customers' purchasing decisions in the North American market, thus extending the recovery timeline," adding that "the increase in import raw material prices in the U.S. due to tariff issues has also put pressure on costs."
He further stated, "The rise in exchange rates compared to the previous quarter also negatively impacted the Korean won-denominated results," but added, "Despite these conditions, relatively decent results were recorded."
He analyzed, "The North American market is expected to bottom out this year and rebound next year," explaining that "the sluggish market this year is due to postponed demand, not a disappearance of demand." He paradoxically noted that this year's postponed demand strengthens expectations for recovery next year.
He expressed, "The fact that the company produces most of its products in the U.S. remains a favorable factor, giving it an advantageous position over competitors directly exposed to tariffs," adding that "if the tariff risk results in price increases across the market, Doosan Bobcat's revenue will improve significantly."
An analyst indicated, "Considering the premiums of U.S. companies, the operating environment in the second half is expected to improve compared to the first half," and noted that "as various uncertainties such as tariff issues ease, dealer and rental companies are expected to begin accumulating inventory."
He explained, "The downside risk to the annual earnings estimate for this year is limited, and the valuation based on the current earnings outlook is attractive compared to competitors," adding that "rather, the low base from the second half of last year could allow for a rebound momentum compared to the same period last year."