Hyundai Motor Facing Margin Pressure from Won's Appreciation
Dow Jones
Yesterday
0353 GMT - Hyundai Motor is facing margin pressure from the won's appreciation, as are other South Korean exporters, says Nomura's Angela Hong. For every 1% appreciation in the won against the dollar, the South Korean automaker's operating profit falls 1.5% to 2%, the analyst says. Hong notes that the local currency has appreciated about 13% against the greenback since July 2. She also reduces the fair value of the company's U.S.-based robotics affiliate, Boston Dynamics, to 55 billion won from 115 billion won previously, based on a newly estimated average selling price for Atlas humanoid robots. Nomura cuts its target price for the company's stock to 520,000 won from 600,000 won, while keeping a buy rating. Shares are 2.3% lower at 380,000 won.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.