Nexen Tire has growth potential from mid- to long-term perspective, said NH Investment and Securities on Feb. 20, maintaining a “buy” recommendation and 16,000 won (US$14.96) target price.
Dented by slow business in North America, unfavorable exchange rate
and Hyundai Motor Group’s slow domestic sales, its earnings in the fourth quarter last year failed to meet market consensus, with 442.3 billion won revenue and 45.4 billion won operating profit, said analyst Cho Su-hong.
Nonetheless, expectations for further growth remain as its Czech plant begins operation in the fourth quarter this year, which will boost its growth from next year, said the analyst.
The tire maker’s revenue this year will top 2 trillion won and its operating profit ratio next year will return to double digits, forecast Cho adding that it is time to purchase its stocks while they remain in the lowest band ever.
By Hwang You-mee (firstname.lastname@example.org