Hana Securities said Tuesday it raised its target price for Hyundai Corporation by 15.2% to 38,000 won, citing a rebound in the company’s energy commercial parts business, which previously drove earnings growth. It maintained a “buy” rating.
In a report, analyst Yoo Jae-seon said Hyundai Corporation’s first-quarter results beat market consensus and that previously weak segments such as steel are showing a better trend than in 2025 as market conditions improve.
Yoo said profit growth is expected to moderate from the second quarter after factoring in a temporary earnings boost in petrochemicals, but added that the company is still likely to post higher profit for the full year. He estimated the stock trades at a price-to-earnings ratio of 4.5 based on this year’s forecast and a price-to-book ratio of 0.5.
First-quarter revenue rose 11.6% from a year earlier to 2.1 trillion won. Yoo attributed the increase to favorable exchange rates and broad-based growth across business lines.
He said steel revenue likely fell from a year earlier due to global trade restrictions such as U.S. tariffs, but he viewed last year as the bottom and said the business is gradually recovering. He added that passenger-vehicle operations are growing as weaker demand in the Commonwealth of Independent States was offset by sales in Central and South America and the Middle East.
Yoo said energy commercial parts are benefiting from solid demand for power equipment, with distribution transformer performance continuing to rise. He added that a temporary sales gap caused by tariffs in the previous quarter has eased, allowing the business to return to a growth trend.
He said geopolitical issues, including conflict in the Middle East, have increased global uncertainty, but Hyundai Corporation’s major businesses are continuing stable growth. He added that the company plans to keep pursuing new businesses this year and that stronger shareholder returns could be expected over the medium to long term.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.