DAISHIN SECURITIES commented on SNT Motiv on the 1st, noting that with strengthened tariff response capabilities and the potential for defense orders in the Middle East along with share buyback considerations, there is substantial potential for further increases. They maintained a 'buy' investment opinion and raised the target price from 41,000 won to 46,000 won. The previous trading day, SNT Motiv's stock price was 37,200 won.
Kim Gwi-yeon, a researcher at DAISHIN SECURITIES, said, "SNT Motiv decided to invest in its production facilities in the U.S. due to prolonged concerns regarding the impacts of tariffs," adding, "This will strengthen the long-term stability of its performance and local order competitiveness."
Previously, SNT Motiv saw its stock price surge more than 8% on the 29th due to news about investment in local production facilities in the U.S. SNT Motiv announced it secured a 100,000 pyeong factory in Louisiana to enhance local responsiveness, establishing SNT Global in May and investing 35.4 billion won.
Researcher Kim noted, "If the possibility of defense orders in the Middle East and the momentum from the 3rd amendment to corporate law this month are highlighted, the company's value premium will be justified again," adding that despite the stock price rising more than 68% compared to the beginning of the year, there remains room for further increases.
He also added, "SNT Motiv has been buying back its own shares at low prices to buoy the stock price and has continued its trend of increasing stock dividends and free issuance," stating that there is a high likelihood that expectations for shareholder returns will continue due to the corporate law amendment momentum.