SK Securities on the 24th said Kia is expected to post solid results even after accounting for U.S. tariff expense. It maintained a Buy rating and a target price of 160,000 won. Kia's previous day's closing price was 113,400 won.
SK Securities projected Kia's 2026 results on a consolidation basis at 126.4 trillion won in revenue, 10.5 trillion won in operating profit, and an operating margin of 8.3%.
If the U.S. tariff rate on automobile items next year is set at 15% as the baseline, the annual tariff expense is estimated to be 3.1 trillion won.
Yun Hyeok-jin, an analyst at SK Securities, said, "Despite the tariff expense, we expect solid results," and noted, "The won-dollar exchange rate, which has become the new normal, is expected to offset nearly half of the tariff expense."
It also analyzed that a rise in U.S. market share in a 15% tariff era, amid a reshaped market, is an upside factor for results in 2026 and 2027. This is because a recent hybrid trend is sweeping the U.S. market.
Among all vehicles, the share of hybrid vehicles in the U.S. auto market was around 6% in early 2022. But it has recently risen to the 13% range, more than doubling. In addition, Kia's U.S. hybrid vehicle market share rose from the 4% range in early 2024 to 7% recently.
Analyst Yun said, "Even in a 25% tariff environment, U.S. market share increased," and analyzed, "If Nissan, Stellantis and other players with weak earnings power move first to raise prices, the U.S. auto market, where a 15% tariff on imported cars will be imposed, is highly likely to undergo a rapid reshaping led by Hyundai Motor Group and Toyota."