Samsung Securities said on the 21st that the governance narrative that had weighed on Hyundai Mobis' share price for 10 years will turn into a premium factor. It kept a buy rating and raised the target price 10.7% to 720,000 won from 650,000 won. The previous day's closing price was 525,000 won.
Samsung Securities said it raised the target price to reflect an environment in which the governance discount is turning into a premium as the initial public offering (IPO) of Boston Dynamics is coming into view for 2028.
Researcher Lim Eun-young at Samsung Securities said, "Hyundai Motor Group has entered a new business in robots, and at the outset Hyundai Mobis is monopolizing key parts such as actuators, grippers, and head modules."
Lim analyzed that the 2028 listing of Boston Dynamics is coming into view and that the possibility of a governance restructuring has also increased.
Lim said, "In Feb. 2024, it was decided to transfer the hydrogen business to Hyundai Motor, and currently the company is pushing to sell the lamp and bumper businesses," adding, "As Hyundai Motor's price-to-earnings ratio (P/E) used for target price calculation rises, Hyundai Mobis' P/E will also increase."