 |
| 현대차 울산공장 아이오닉5 생산라인. (사진=현대차그룹) |
[Alpha Biz=(Chicago) Reporter Kim Jisun] DS Investment & Securities raised Hyundai's target price from 250,000 won to 300,000 won. Analysts say expectations continue for the resolution of the undervaluation. The investment opinion maintained the buy-off.
"As the government hinted at the continuation of its low-PBR enhancement policy on the 27th, expectations are reflected in stock prices," DS Investment & Securities said. "Hyundai Motor's share price net asset ratio (PBR) is still valid compared to Kia, which is 0.67 times, which is close to 1 times," said DS Investment & Securities Co.
It is also positive that earnings are expected to improve. Analysts say it is a favorable environment for South Korean carmakers such as favorable exchange rates, solid U.S. demand, strong hybrid cars and a delay in plans to switch to U.S. electric vehicles (EV).
Recently, global automakers have been expanding their shareholder return policies. GM announced a $ 10 billion buyback in November last year, while Ford set a dividend payout ratio of more than 40% to its annual surplus cash flow (FCF).
"Hyundai Motor's dividend payout ratio was about 25 percent last year, in line with the global average of 25 to 30 percent," said DS Investment & Securities Co. "This year, the company plans to incinerate its own shares (3 percent) by 1 percent per year while maintaining a dividend payout ratio of more than 25 percent as part of its three-year mid- to long-term shareholder return policy."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
