[Click eStock] "Hyundai Motor Is the Top Pick in the Automotive Sector... It's Okay to Be Ambitious"

On January 13, Kiwoom Securities raised its target price for Hyundai Motor Company from 3.4 million won to 4.5 million won, stating that both the strength of the earnings rebound and the stock price surge triggered by physical AI support Hyundai Motor's emergence as a leading stock in the automotive sector. The 'Buy' investment rating was maintained.

Hyundai Motor's sales in the fourth quarter of last year are projected to reach 47.3 trillion won (up 1.6% year-on-year), with operating profit at 2.67 trillion won (down 5.5%), slightly below market expectations. Global wholesale sales were sluggish, recording 1.03 million units (down 3.1%). The recently announced 2026 wholesale sales business plan is also being evaluated as falling short of expectations, at approximately 4.15 million units (up 0.5%).

Shin Yooncheol, a researcher at Kiwoom Securities, commented, "Hyundai Motor has failed to meet its wholesale sales business plan for 11 consecutive years since 2015," and added, "From 2026, we expect the company to set more conservative business plans and then exceed them, thereby proving a turnaround in performance."

Currently, Hyundai Motor's stock price is trading at a 12-month forward price-to-earnings ratio (PER) of 8.3 times, reaching the level seen during the Apple Car rally in 2021. However, as partnerships with big tech (large information technology companies) ultimately did not materialize officially, Hyundai Motor's stock price peak at that time ended up being a one-off event.

Researcher Shin stated, "Unlike with the Apple Car, all three of Hyundai Motor Group's major physical AI new businesses (robotics, robotaxis, and SDF) have begun to clarify their business direction and partnerships." He added, "In particular, as the partnership with Nvidia, a big tech company, continues to expand, expectations are growing that there will be progress in Hyundai Motor Group's autonomous driving project, which has long been delayed in commercialization." The automotive sector top pick rating was also maintained.