[Click e-Stock] "Doosan Bobcat Relatively Safe from Tariff Risks... Investment Rating Upgraded"

On April 29, Samsung Securities assessed that Doosan Bobcat is relatively safe from U.S.-originated tariff risks and also offers attractive valuation. Accordingly, the firm upgraded its investment rating to 'Buy' while maintaining its target price at 54,500 won.

Han Youngsoo, an analyst at Samsung Securities, stated, "Doosan Bobcat's operating profit for the first quarter fell 7% short of market expectations, but its operating margin improved compared to the previous quarter." He added, "The second half of last year, when the company spent on dealer inventory normalization (reduction) and related promotional expenses, marked the bottom of its performance." He further noted, "If dealers resume inventory accumulation in the future, this could lead to increased sales and additional cost-saving effects."

Regarding concerns about U.S.-originated tariffs recently faced by domestic construction machinery companies, Doosan Bobcat was evaluated as relatively safe. Han explained, "Doosan Bobcat manufactures most of its core products in the United States and holds a leading position in the U.S. compact equipment market, which allows it to directly influence market pricing." He continued, "The risk of performance fluctuations due to competitors' pricing policies is also limited." However, he pointed out, "Some parts are still sourced from outside the United States, and it is difficult to completely rule out the possibility that uncertainty from tariff risks could dampen the investment sentiment of equipment buyers, so some indirect impact may exist."

He also highlighted that Doosan Bobcat's valuation is discounted compared to other domestic construction equipment companies. He said, "With the upside potential from the current target price expanding to 18%, we are upgrading our investment rating to Buy."