NH Investment & Securities raises Kia’s target price from 21ten-thousand-won to 22ten-thousand-won

NH Investment & Securities raised Kia’s target price from 21ten-thousand-won to 22ten-thousand-won. The analyst cited the strength of the core business and expectations for a transition into new businesses as reasons for the increase. The target-price increase is a direct adjustment based on the report.

Haneul, an analyst at NH Investment & Securities, 22said sustained earnings growth is expected, supported by a solid core business. The analyst explained that Kia is evolving into a physical AI company through the expansion of robotics and its transition to software-defined vehicles. The analyst stated that these changes could affect the company’s value over the medium to long term.

The report noted, however, that the development of new businesses is still at an early stage. It said this is expected to widen the share-price valuation gap with Hyundai Motor for the time being. The analyst assessed that Kia’s share price is sensitive to the pace of development of its new businesses.

The report also stated that Kia continues to operate in a more favorable environment than Hyundai Motor in terms of automotive sales momentum and profitability. At the same time, it said that new business strategies at the group level are being led by Hyundai Motor. It analyzed that this affects the valuation of Kia’s new businesses.

The report said that attention should be paid to Kia’s development of new businesses, particularly in key areas such as software-defined vehicles, autonomous driving, and robotics. It added that software-defined vehicles are a way of designing vehicle functions around software. The report stated that, based on these factors, it had slightly raised its target share price.