Hana Securities on Wednesday raised its target price for Kia by 40% to 210,000 won from 150,000 won, citing higher earnings estimates, improved readiness in software-defined vehicles (SDVs) and robotics, and a higher valuation multiple for its auto business. It kept its rating at buy.
Analyst Song Sun-jae said the firm lifted its 2026 operating profit estimate by 3% to reflect new-model launches and foreign-exchange effects, adding that the expected dividend yield is 4.5%. He said Hana also raised the target multiple for Kia’s auto business to eight times from seven times as it sees improving long-term competitiveness in SDVs and robotics. The higher target price also reflects the value of Kia’s stakes in Hyundai Mobis and Boston Dynamics, he said.
Kia’s fourth-quarter results met market expectations. On a consolidated basis, revenue rose 3% from a year earlier to 28.09 trillion won, while operating profit fell 32% to 1.84 trillion won. Operating margin slipped 3.4 percentage points to 6.6%. Global wholesale sales fell 1% to 763,000 vehicles, but gains in North America and India offset weakness in some regions. Hana said higher average selling prices, cost cuts and foreign-exchange effects helped support results, and that the profitability decline was limited when excluding tariff-related costs.
Hana’s medium- to long-term view remained positive. It said that despite slower growth in global industry demand in 2026, Kia could improve volume and model mix in key markets through new launches focused on higher-priced vehicles. It cited EV4, EV5, PV5 and Seltos in South Korea; Carnival HEV, Telluride and Seltos in the United States; EV4, EV5, EV2 and K4 in Europe; and Seltos and a strategic electric vehicle in India.
Kia has guided for 2026 consolidated revenue of 122.3 trillion won and operating profit of 10.2 trillion won, targeting an operating margin of 8.3%. Song said Kia told a conference call it aims for 3.35 million wholesale sales in 2026, up 6.8% from the prior year. In the United States, he said Kia expects growth and a better mix led by the Telluride — to be launched as a new model for the first time in seven years — with its target rising to 180,000 units from 120,000, along with the Carnival HEV and Seltos. In Europe, he said sales of EV models launched in 2025 are expected to ramp up, and Kia plans to add the lower-priced EV2 model.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.