DS Investment & Securities said on the 5th that if Hyundai Motor reorganizes its governance structure, the group's artificial intelligence (AI) software (SW) capabilities could be recognized by the market and the corporations value could be re-rated. It maintained its investment opinion at Buy and raised the target price to 4.3 million won from 3.3 million won. Hyundai Motor's previous session closing price was 283,500 won.
Choi Tae-yong, an analyst at DS Investment & Securities, said, "Hyundai Motor is expanding its market base faster than any global automaker, yet its valuation sits at the historical bottom," citing as the reason "the lack of AI SW capabilities represented by Autonomous Driving."
He added, "The structural cause is that within the group, AI SW development capabilities are dispersed among Hyundai Mobis, Hyundai AutoEver, 42dot, and Boston Dynamics."
Choi said that if a governance restructuring concentrates the group companies' SW capabilities, the currently undervalued corporations value would likely be re-rated. He projected that if the circular shareholding structure is resolved and the group is reorganized into a de facto holding company, Hyundai Motor's earnings would become visible through the Nvidia GPU supply contract (2025), SDV pace car (2026), and mass production of Humanoid Robot (2028).
Choi said, "If circular shareholding is resolved, the surviving entity of Hyundai Mobis will serve as the technological hub, and integration of AI SW capabilities is expected," adding, "Technology integration as a de facto holding company would be recognized as an internal business realignment, and at the same time enable a re-rating as the group's SW platform company."
He also viewed next year's now-clarifying Hyundai Motor results positively. Choi said, "With new model effects concentrated, U.S. hybrid market share and European EV market share are expected to expand in the first quarter of 2026."
He also projected growth in the Robotics sector. Choi said, "With CES 2026, value-chain visibility, and the reoccurrence of the put-option deadline for SoftBank's BD equity, Robotics is expected to continue drawing attention," adding, "If, on the Robotics tailwind, Boston Dynamics' corporations value is recognized at the level of Figure AI, Hyundai Motor's equity value would be estimated at 4.6 trillion won."