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Photo = Hyundai Motor |
[Alpha Biz= Reporter Kim Sangjin] The stock prices of Hyundai Motor and Kia, major representatives of the domestic automotive industry, continue to decline. Despite this, analysts have adjusted their target prices slightly downward but still recommend buying these stocks at their current low levels.
On the KOSPI market on the 11th, Hyundai Motor closed at 223,500 won, down 3.25% from the previous day. After reaching a 52-week high of 299,500 won at the end of June, Hyundai's stock has been on a downward trend and is now in the 220,000 won range.
Similarly, Kia's stock ended the day at 96,200 won, down 3.99% from the previous day. After hitting a 52-week high of 135,000 won in June, Kia's stock has been falling and has now dropped below the 100,000 won mark.
Both stocks experienced a slight rebound after the "Black Monday" on August 5th but have since reverted to their previous low levels.
Despite the current decline, analysts continue to recommend buying these stocks. They believe that while there is heightened volatility due to concerns about the electric vehicle market, stabilization of US subsidy policies next year is unlikely to significantly impact their performance.
Daol Investment Securities has issued a report titled "Opportunity to Buy Auto Stocks on the Dip," setting target prices for Hyundai Motor and Kia at 370,000 won and 155,000 won, respectively. They suggest taking advantage of the current low prices due to the companies' positive shareholder return policies.
Hyundai Motor has already announced a plan to repurchase 4 trillion won worth of shares over the next three years, starting in 2025, while Kia is also expected to announce a shareholder return policy.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
