Korean Brokers Cut Hyundai, Kia Target Prices Up to 17% as Q2 Earnings Miss Forecasts

According to F&Guide, South Korean securities firms collectively lowered target prices for Hyundai Motor and Kia during the past month through August 12. Hyundai saw 14 downgrade reports, with Yuanta Securities cutting its target to 570,000 won from 690,000 won, a 17.39% reduction. Kia received 11 downgrades, with Hana Securities lowering its target to 190,000 won from 220,000 won, down 13.63%.

Brokers cited worse-than-consensus Q2 earnings as the primary driver. Hyundai's operating profit fell to 2.85 trillion won, below the 3 trillion won forecast, while Kia's dropped to 2.63 trillion won versus 2.79 trillion won expected. Both companies saw year-on-year declines of 20.8% and 4.9% respectively. Rising Chinese auto exports—reaching 918,000 units in July, up 87.8% annually—intensify competitive pressures on Korean automakers.