Intel stock extends gains after report of possible U.S. government stake
On Friday, JPMorgan maintained its Overweight rating on Hyundai (OTC:HYMTF) Rotem Co Ltd (064350:KS) while increasing the price target from KRW130,000 to KRW150,000. The revision reflects a more than 40% potential upside from the current share price, according to JPMorgan analysts.
Hyundai Rotem’s first quarter sales and operating profit for 2025 were below JPMorgan’s optimistic projections but still managed to surpass the consensus estimates. The shortfall in comparison to JPMorgan’s expectations was attributed to the defense sector, where sales fell short by 20%. Despite this, the defense export margins remained robust at 40%, supported by a high proportion of exports in defense sales and a consistent operating profit margin domestically.
The analysts at JPMorgan have grown more confident in Hyundai Rotem’s margin outlook for the upcoming quarters. This confidence is bolstered by the company’s guidance, which anticipates increased production and deliveries to Poland. Hyundai Rotem is also optimistic about finalizing the Poland order without affecting sales recognition, despite previous delays.
Furthermore, Hyundai Rotem has indicated the necessity for capacity expansion, pointing to a series of upcoming orders beyond the Poland deal. JPMorgan analysts believe that these potential orders are not yet reflected in the current stock price. With these positive factors in mind, the firm has raised its price target and reiterated its Overweight stance on Hyundai Rotem stock.
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