Hyundai Construction Equipment’s business environment this year will be favorable, said KTB Investment and Securities on Feb. 28 raising the target price to 61,000 won (US$54.49) from 59,000 won.
Currency rates of emerging markets are stabilizing and demand for construction equipment is rising as India is investing heavily in infrastructure. The US Housing Market Index has recovered to 62 from December’s 56, and demand in the market will remain solid. Although revenue from the domestic market is contributing less than before, it is expected to gain from regulation exemption this year and additional decline in revenue will be limited, said analyst Kim Hyo-sik.
However, if the current Indian Prime Minister Narendra Modi fails to be reelected in April, there could be a change in the country’s policies. In China, sales in January dropped 30.5 percent on-year and market share has declined. So investors should keep an eye on whether it would recover, noted the analyst.
By Hwang You-mee (email@example.com)