Business · Companies · 3 hrs ago
Korea Investment lowers Hyundai Rotem’s target price as export deals remain uncertain
Korea Investment lowered its target price for South Korean defence and rail company Hyundai Rotem from 270,000 won to 190,000 won, while keeping its buy rating.
It expects the company’s operating profit in 2027 to be 1.1201 trillion won, 23.3% below its previous estimate but 8.1% above this year’s forecast.
The change reflects uncertainty about when large export contracts will be signed.
Potential deals include sales to Iraq, Peru and Romania, as well as a third contract with Poland, but none had been signed at the time of the assessment.
The analyst said global supply and demand conditions for tanks still made these deals likely, though their timing remains unclear.
Hyundai Rotem’s third-quarter results are expected to meet market expectations, with deliveries of Polish K2 tanks helping offset weaker export profitability linked to currency movements.
If major contracts are signed, the company’s profit estimates could rise, and its longer-term growth outlook could become clearer.
Korea Investment lowered its target price for Hyundai Rotem from 270,000 won to 190,000 won, while keeping its “buy” rating.
The brokerage said uncertainty over when large export contracts will be signed led it to cut its earnings estimate for next year.
Hyundai Rotem is pursuing major export projects in Iraq, Peru, Romania and a third Polish contract, but no new contracts have been signed, the report said.
Korea Investment expects next year’s operating profit to reach 1.1201 trillion won, down 23.3% from its previous estimate.
- Who
- Korea Investment Securities and Hyundai Rotem.
- What
- Korea Investment cut its target price for Hyundai Rotem to 190,000 won and lowered its next-year operating profit estimate, while maintaining a “buy” rating.
- When
- The article was published on October 12, 2026; it says the brokerage made its assessment on October 13.
- Where
- Not stated.
- Why
- The brokerage cited uncertainty about the timing of large export contracts and lowered its next-year earnings estimate accordingly.
This story does not have two clearly opposing sides.
Hankyung published its report on Korea Investment’s lowered target price and earnings estimate for Hyundai Rotem.
Korea Investment’s assessment, as described in the article, lowered the target price and next-year earnings estimate while maintaining a “buy” rating.
- Previous target price
- 270,000 won
- New target price
- 190,000 won
- Next-year operating profit estimate
- 1.1201 trillion won
- Reduction to next-year operating profit estimate
- 23.3%
- Expected third-quarter revenue
- 1.749 trillion won
What people are saying
Large export projects in Iraq, Peru, Romania and a third contract in Poland are being pursued, but no new contracts have been signed yet.
Given the supply-demand imbalance in the global tank market, the likelihood of those projects being contracted remains high.
However, uncertainty remains over when the contracts will be signed.
Sources
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