Daishin Securities Co. said on the 25th that Hyundai Motor has sufficient momentum for a stock price rise next year. It maintained its "Buy" investment opinion and raised its target price to 340,000 won from 330,000 won. The previous trading day's closing price of Hyundai Motor was 259,500 won.
Kim Gwiyeon, a researcher at Daishin Securities Co., said, "Considering next year's new car lineup (Tucson, Avante, Grandeur, Santa Fe), tariff cuts and offsets, and the potential to strengthen Robotics momentum through the Consumer Electronics Show (CES), the momentum for a stock price rise next year is sufficient."
Kim added, "If the tariff is cut to 15%, an earnings increase effect of 720 billion won per quarter is expected," and said, "Taking into account inventory at the U.S. subsidiary, improvement in consolidation profit and loss will get into full swing starting next year." The firm projected next year's annual revenue and operating profit at 193 trillion won and 15 trillion won. Each represents increases of 3% and 20% from the same period a year earlier.
It also forecast that Hyundai Motor's market share in the United States will improve by 0.3 percentage point. Next year's key new models for Hyundai Motor are the Avante, Tucson FMC, Grandeur, and Santa Fe FL, with expectations that a new-car cycle centered on the United States will arrive.
Kim said, "The retail sales share of the Palisade, Tucson, Santa Fe, and Avante (Elantra), which will be the U.S. new-car momentum, is 60%, with annual sales of 500,000 to 600,000 units," and explained, "Considering volumes from new launches and the U.S. demand outlook (17.16 million units), a 0.3 percentage point rise in U.S. market share should be readily achievable."