[THE INVESTOR] Hyundai Motor’s third-quarter earnings were a major disappointment, said KTB Investment and Securities on Oct. 26 lowering the target price to 150,000 won (US$131.93) from 180,000 won.
Its operating profit in the period tumbled 74 percent on-year to 288.9 billion won, widely missing market consensus. This was mainly due to weak currencies of emerging countries and quality setbacks, said analyst Lee Han-jun.
The currency effect will continue to burden the carmaker in the fourth quarter, but sales will be solid in Korea while in the US incentives will decline from launching a new car, he said maintaining a “buy” recommendation.
By Hwang You-mee (email@example.com)