Kiwoom Securities has adjusted its target price for Hyundai Motor from 700,000 won to 600,000 won, reflecting production disruptions and weak sales due to domestic factory strikes. However, the firm maintains a positive outlook on the demand for hybrid electric vehicles (HEVs).
Shin Yoon-cheol, a researcher at Kiwoom Securities, stated, "Third-quarter consolidated revenue is expected to be 43.8 trillion won, with operating profit at 2.41 trillion won, falling short of market expectations. Global wholesale sales are projected to decline by 11.5% year-on-year to 919,000 units, while domestic sales are anticipated to drop by 27.2%."
He attributed the poor sales performance in key regions during the third quarter primarily to strikes at the Asan and Ulsan plants that occurred from July to August. The situation was exacerbated by production halts due to the replacement of aging equipment at the Asan plant.
Despite the lowered target price, the potential for increased sales of new hybrid models is viewed positively. Shin noted, "As consumer sentiment weakens amid rising market interest rates, demand is expected to concentrate on HEVs in the fourth quarter, especially as electric vehicle subsidies in major regions are depleted towards the end of the year."
He added, "We anticipate a strong volume cycle for the new hybrid models of the Tucson, Avante, and GV80. If the existing annual guidance for 2026 is maintained based on these new models, we can expect new foreign investments."
* This article has been translated by AI.
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