Yuanta Securities announced on June 16 that it has raised its target price for Hyundai Motor Company from 600,000 won to 690,000 won, reflecting expectations for growth in the global humanoid market driven by Boston Dynamics. However, the firm downgraded its investment recommendation from 'buy' to 'hold.'
In a report released that day, analyst Kim Yong-min stated, "The rise in Hyundai's stock price this year is not a reevaluation of its existing automotive-related new businesses."
He explained, "While there is no quantifiable method, comparing stock trends with competitors in the sector shows that Hyundai's stock has experienced a different kind of increase than that of the overall automotive industry. This has led to a miscalculation of the appropriate value of new businesses that do not impact profits based on the core business's earnings."
Kim further noted, "Even when applying a re-rating perspective to the automotive business, there are blind spots. Most of the company's pre-tax earnings come from the automotive sector, but when combining financial, other, and equity method profit segments, they accounted for about 40% of pre-tax earnings as of 2025. While a valuation premium for the core automotive business may be justified, applying a single price-to-earnings (P/E) multiple ultimately has structural limitations."
Looking ahead, Kim identified potential catalysts for stock price increases, including the exercise of SoftBank's put option on its Boston Dynamics stake between June and July, third-party equity investments during Boston Dynamics' capital increase in the second quarter of this year, and increased visibility in future production through non-captive orders. However, he maintained a neutral stance on the unconditional optimism regarding Boston Dynamics' initial public offering (IPO) valuation.
He added, "Even when applying a single P/E valuation multiple, the situation has become elevated compared to global competitors, and the source of profits also adds dilution factors to the valuation. Therefore, a cautious approach is necessary regarding stock price increases accompanied by declines in the core business."
* This article has been translated by AI.
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