Hyundai Motor’s slump will come to an end after five years, said IBK Securities on Nov. 23, maintaining a “buy” recommendation and 200,000 won (US$183.99) target price.
Its earnings have been declining and this year took a blow from THAAD row but it has finally bottomed out and will show visible signs of recovery next year, said analyst Lee Sang-hyeon.
Demand is rising in emerging markets while application of next-generation power train and expanding SUV lineup will bolster the recovery, according to the analyst. The next models of Santafe or Tuscon will be equipped with updated power train, and the automaker will roll out SUVs for all segments, he added.
Its revenue next year will rise 2.4 percent from 2017 to 98.8 trillion won and operating profit by 8.6 percent to 5.4 trillion won, estimated Lee.
By Hwang You-mee (firstname.lastname@example.org)