Morgan Stanley upgrades SNT Motiv stock rating to Overweight on defense growth

Published 16/07/2025, 06:10
Morgan Stanley upgrades SNT Motiv stock rating to Overweight on defense growth

Investing.com - Morgan Stanley (NYSE:MS) upgraded SNT Motiv Co. Ltd (KS:064960) from Equalweight to Overweight on Wednesday, while raising its price target to KRW45,000 from KRW32,000, implying approximately 34% upside potential.

The upgrade reflects Morgan Stanley’s expectation of accelerating revenue and earnings growth beginning in 2026, alongside growing earnings contribution from the company’s defense business segment.

SNT Motiv has struggled to generate meaningful revenue and operating profit growth since 2022, despite solid operations and execution, according to the investment bank’s analysis.

Morgan Stanley noted that both auto parts and defense businesses are positioned to grow through penetration of new orders starting in 2026, potentially changing the company’s growth trajectory.

The firm highlighted that the defense business could contribute more than 35% of total operating profit, suggesting a reevaluation of SNT Motiv may be appropriate given the material re-rating of global defense companies amid heightened national security concerns.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.