Shinhan Investment & Securities said on the 11th that as artificial intelligence (AI) and robots emerge as growth drivers for Hyundai Motor, solid profitability in the complete vehicle institutional sector will support earnings. It maintained its investment rating at Buy and raised the target price to 380,000 won from 320,000 won. Hyundai Motor's previous trading day closing price was 302,500 won.
Park Gwang-rae, a research fellow at Shinhan Investment & Securities, said of Hyundai Motor, "The evolution into an AI and robot corporations will drive a re-rating of corporate value." Hyundai Motor currently holds about 27% equity in Boston Dynamics through HMG Global.
Park said, "Starting in 2026, the Humanoid Robot 'New Atlas' will be piloted at the HMGMA plant," adding, "With the likelihood of a Boston Dynamics listing seen as high, the equity value, estimated at about 12 trillion won, will be a driver of the stock's rise."
The 12 trillion won equity value applies a price-to-sales ratio (PSR) of about 300 times to revenue for the latest four quarters. Reflecting a discount for duplicate listings, it was expected to be 6 trillion won.
He noted, "Toyota, which takes the most conservative stance in Autonomous Driving, robots, and AI, trades at a price-earnings ratio (PER) of about 10–11 times," and predicted, "When Hyundai Motor's SDV pace car launches in 2026, its value will be re-rated to a double-digit PER." As of 2024, Hyundai Motor's PER is 4.9 times.
Park said that if AI and robots are offense, the automobile institutional sector will play defense. He said, "The recent moves by the Trump administration to ease fuel economy regulations and remove electric vehicle tax credits are negatives for EV companies but opportunities for Hyundai Motor," adding, "Operation of HMGMA, which can produce mixed lines (EV/HEV), can absorb surging hybrid demand and offset slowing EV demand."