IBK Securities announced on June 9 that it is maintaining a "buy" rating for Hyundai Motor, citing the company's stable profitability in its core automotive business, its shareholder return policy, and the growing value of its robotics sector. The firm has raised its target price for Hyundai Motor to 770,000 won.
IBK Securities forecasts Hyundai Motor's revenue for 2026 to reach 195.189 trillion won, with an operating profit of 12.1 trillion won. The automotive division is expected to generate 157.18 trillion won in sales, while the financial sector is projected to contribute 35.111 trillion won.
Lee Hyun-wook, an analyst at IBK Securities, highlighted several investment points for Hyundai Motor: the company's resilience in performance centered around hybrid vehicles (HEVs), flexibility in transitioning to electrification, support for valuation due to increased shareholder returns, and the emphasis on robotics value through the mass production of the humanoid robot "Atlas" in collaboration with Boston Dynamics.
Lee noted that Hyundai Motor Group is developing Boston Dynamics not just as a technology asset but as an industrial platform that combines manufacturing, parts, logistics, IT, and financial capabilities. The group can leverage its automotive factories, logistics, parts manufacturing, and global production network as a testing ground, allowing it to generate initial demand for Atlas internally.
He stated, "The biggest challenge in commercializing humanoids is securing sales channels," adding that Hyundai Motor Group can create captive demand of approximately 25,000 units by utilizing its production facilities.
Additionally, the Robot Meta-Plant Application Center (RMAC) at the HMG Meta-Plant America (HMGMA) is set to begin operations in the summer of 2026, which is expected to facilitate the establishment of a robotic ecosystem that connects data collection, learning, validation, simulation, and actuator manufacturing.
The increase in the target price reflects both the value of the automotive core business and the robotics sector. The analyst estimated the value of the core business at 133 trillion won by applying a target price-to-earnings ratio (PER) of 11.5 times to the projected net income for controlling shareholders in 2027. Furthermore, by applying a target price-to-sales ratio (PSR) of 13 times to the anticipated revenue of 10.9 trillion won from Boston Dynamics in 2030 and factoring in Hyundai's equity value, an additional robotics value of approximately 39 trillion won was assessed. Based on this, a target market capitalization of 158 trillion won was proposed.
* This article has been translated by AI.
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