Daol Investment & Securities said Wednesday it raised its target price for Doosan Bobcat to 100,000 won from 81,000 won, a 23% increase, citing simultaneous growth in the U.S. and European markets and improving earnings. It maintained a “buy” rating.
Choi Kwang-sik, an analyst at Daol Investment & Securities, said the U.S. market was solid in the first quarter, as it was for peers, while Europe posted growth. He said the firm raised its fair value estimate after results beat guidance and as it expects the market recovery cycle to continue over the next two years.
Doosan Bobcat reported first-quarter consolidated revenue of 2.2473 trillion won and operating profit of 207.0 billion won, topping market expectations. The operating margin recovered to the high-7% range even excluding one-off factors, supported by price increases and cost controls, the report said.
By region, both the U.S. and Europe expanded. The company had expected a U.S. decline this year after factoring in front-loaded demand tied to tariff effects, but sales instead rose 3%. The EMEA region, covering Europe, the Middle East and Africa, grew 18%, helping drive the improvement.
By product, compact construction equipment and industrial vehicles posted $1.211 billion and $223 million, respectively, maintaining steady performance. The portable power business, where some shipments were deferred, is expected to be reflected in second-quarter results. The company also implemented additional price increases to offset the burden of steel and aluminum tariffs.
Choi said low dealer inventories were another positive factor, adding that if retail demand continues to recover this year, the second half could outperform the first and signal entry into a recovery cycle.
Daol also said the stock remains undervalued. Doosan Bobcat’s price-to-earnings ratio is about 13 times for 2026 and 10 times for 2027, below global peers’ 20 to 30 times. If the company maintains a 40% shareholder return ratio this year, the dividend yield is expected to be about 3.1%.
* This article has been translated by AI.
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