Yuanta Securities Korea analyzed on the 29th that global demand for construction machinery is recovering, indicating that the time to expect a rise in stock prices for Doosan Bobcat has arrived. The target price has been raised from the previous 56,000 won to 68,000 won, maintaining an 'overweight' investment opinion.
Jang Yoon-seok, a researcher at Yuanta Securities Korea, noted, "Since the inventory adjustment in the first half is a strategy in preparation for tariff uncertainties in the second half, sales will grow in the second half even if market demand decreases." He added, "There are variables such as tariffs and interest rates, but the U.S. cannot sustain a trade war and high interest rates for a long time, so recovery of performance is just a matter of timing."
After the earnings announcement for the second quarter of this year, among the three domestic construction machinery companies, HD Hyundai Infracore and HD Hyundai Construction Equipment saw increases of 19% and 14%, respectively, compared to the previous day, while Doosan Bobcat remained unchanged.
Researcher Jang explained, "Both companies of the HD Hyundai Group have shown demand recovery in regions excluding North America, resulting in sales growth compared to the previous year, but the company has not confirmed physical growth due to sales recovery in its main market of North America and other regions."
He continued, "However, due to the effects of proactive inventory adjustments carried out in the first half, sales are expected to turn to growth starting in the second half," adding that "the construction machinery companies of the HD Hyundai Group will share the recovery of major regional construction machinery they have confirmed."