Canadian submarine contract loss leaves shipbuilding 3 companies’ target prices down by as much as 28%
NH Investment & Securities 2026year 7month 10day said it lowered the target prices of HD Hyundai, Samsung Heavy Industries, and Hanwha Ocean by as much as 28%. The brokerage said it considered the increased growth uncertainty caused by the failed contract win, as well as macroeconomic variables such as rising interest rates, to be negative factors.
NH Investment & Securities 2026year 7month 10day announced that it had lowered the target prices of HD Hyundai, Samsung Heavy Industries, and Hanwha Ocean by as much as 28%. From investors’ perspective, the brokerage’s assessment could be reflected in stock prices in the short term.
NH Investment & Securities explained that the failed contract win had increased uncertainty over the growth trend. The report cited weakened visibility on new contracts as the key reason for the target-price adjustment.
The brokerage said it also considered macroeconomic variables such as rising interest rates to be negative factors in the target-price adjustment process. Interest-rate variables were mentioned as factors affecting shipbuilders’ debt costs and cost of capital.
The report stated that the target prices for all three companies had been lowered. It specified that the adjustment to each company’s target price resulted from changes to the calculation assumptions in the report.
The announcement is described as a case in which the outcome of the Canadian submarine contract award was immediately reflected in the investment sentiment toward major South Korean shipbuilders and in securities firms’ earnings assumptions. The full report is included in NH Investment & Securities’ 7month 10day material.
Sources: 매일경제 증권
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