[Edaily Reporter kyoungeun kim ] On the 24th, iM Securities noted that while HyundaiMotor(005380)’s second-quarter earnings fell short of expectations, the stock price actually rose—unaffected by market concerns over a deterioration in fundamentals—and predicted that there would be an opportunity for a stock price rebound in the third quarter.
Lee Sang-soo, an analyst at iM Securities, stated in a report released that day that the firm is maintaining its “Buy” rating and a target price of 650,000 won for HyundaiMotor(005380).
The analyst noted, “Market expectations for the company’s earnings were already low based on sales data, but HyundaiMotor’s stock price rose following the earnings announcement despite results falling short of the market consensus.” He added, “The market’s reaction after the earnings release indicates that the weak second-quarter results are viewed as short-term noise and that the market believes they will not undermine the company’s fundamentals, which are supported by three key factors.”
He pointed out that HyundaiMotor’s current enterprise value is based on three factors: its competitive edge in its core business compared to legacy original equipment manufacturers (OEMs); its commitment to developing software-defined vehicles (SDVs) and autonomous driving; and the value of its Boston Dynamics business.
The analyst pointed out, “Despite weak second-quarter earnings due to domestic and international production disruptions, HyundaiMotor maintained the 2026 earnings guidance it presented at the beginning of the year,” adding, “For this market confidence to continue, we will need to see improved performance in its core business alongside results from future ventures.”
He continued, “While we cannot rule out the possibility that the earnings guidance may be revised downward at HyundaiMotor’s Corporate Investor Day (CID) scheduled for August 26,” he added, “HyundaiMotor’s determination to overcome the slump observed in the European and domestic markets through the second quarter—and the feasibility of doing so—appears high, given its lineup of new models scheduled for release in the second half of the year, such as the Ioniq 3 and the all-new Avante.”
Furthermore, he noted, “It has been confirmed that SoftBank exercised its put option on its remaining stake in Boston Dynamics in July, and as a result, market expectations are rising regarding the concrete development of the Boston Dynamics business.”
He continued, “In addition, key milestones related to HyundaiMotor’s future businesses—such as the SDV concept car demonstration runs scheduled for the third quarter—are fast approaching in the second half of the year,” and predicted, “Given the high likelihood that relevant details will be shared with the market at HyundaiMotor’s CID event on August 26, a rebound in the domestic automotive sector is highly probable around the time of that event.”