Daol Investment & Securities on the 2nd said investment for mass production with Boston Dynamics has entered a concrete stage for Hyundai Motor. It maintained its Buy rating and raised the target price to 1 million won from 740,000 won. Hyundai Motor's previous closing price was 750,000 won.
Researcher Yu Ji-ung at Daol Investment & Securities said, "We judge the timing of an earnings rebound to be year-end, when the U.S.-bound software-defined vehicle (SDV) rollout gets into full swing, but Hyundai Motor's share-price re-rating is likely to be driven as Boston Dynamics' valuation-up momentum accompanies it between June and October."
Daol Investment & Securities analyzed that, starting in June this year, changes in SoftBank's equity in Boston Dynamics and equity acquisitions by new strategic investors (SI) are expected.
Starting with this, it was expected that the unlisted valuation of Boston Dynamics would surge and that Hyundai Motor's multiple, which is central to Boston Dynamics' revenue-generation strategy, would also expand.
Also, after Boston Dynamics released its collaboration with Google DeepMind at the start of the year, the transition of Gemini to agentic artificial intelligence (AI) was additionally released. As a result, Boston Dynamics, which is applying Gemini first, was forecast to dramatically shorten the timeline for entering the total addressable market (TAM) outside Hyundai Motor Group.
Accordingly, Researcher Yu analyzed that the grounds are becoming clear for the initial humanoid production capacity of 30,000 units to expand significantly.
In addition, Boston Dynamics was analyzed to be set to exhaust the 1.3 trillion won raised through a paid-in capital increase recruited in the third quarter of last year, with year-end this year as the baseline. Typically, considering an initial public offering (IPO) target, cash burn is expected to be highest in 2028, when mass production begins. Accordingly, Daol Investment & Securities saw two to three paid-in capital increases taking place before the IPO.
Researcher Yu said, "Even considering equity dilution, Hyundai Motor Group and Chair Chung Eui-sun are highly likely at a stage of actively seeking to bring in external SIs, including Google," adding, "As robot production volumes of potentially more than 100,000 units are discussed, a further upward revision of Boston Dynamics' IPO valuation, currently expected at about 100 trillion won, will become possible."