Daishin Securities said on the 16th that although a short-term expense from the Palisade recall is inevitable for Hyundai Motor, the impact on fundamentals (basic strength) is unlikely to be significant.
It maintained an investment opinion of "buy (BUY)" and a target price of 660,000 won. The previous trading day's closing price of Hyundai Motor was 521,000 won.
On the 13th (local time), Hyundai Motor's North America subsidiary said it would halt sales and production of the 2026 Palisade Limited and Caligraphy trims and conduct a voluntary recall. This measure followed a fatal infant entrapment accident on the 7th caused by the second- and third-row power-folding "tilt-and-slide" function failing to properly detect occupants.
Hyundai Motor is currently contacting buyers directly to advise caution when operating the power seats and is developing a temporary software update to improve contact-detection functionality and enhance system safety. The company plans to carry out a temporary over-the-air (OTA) update by the end of March.
Kim Gwiyeon, a Daishin Securities researcher, said, "If Korea conducts a recall under the same criteria, the Caligraphy trim and the Prestige trim with the Comfort Plus option would be included," adding, "The North America target models number 68,482 units, and in Korea, most of the 37,517 units produced domestically after the second quarter of 2025 would be included."
However, despite a temporary increase in expense, the basic strength remains solid, Kim assessed. "It is regrettable that human casualties and a recall occurred related to defects in a core 2026 new model," Kim said, adding, "If the recall is carried out via OTA, the impact on production disruptions will not be prolonged, and recall expense will likely be limited to rental car expense at customer request, so the impact on earnings should not be large."