Hyundai Motor’s Valuation Re-Rated: Why Global Brokers See More Upside Ahead

Hyundai Motor Company is once again drawing strong attention from global investors as major Korean brokerages significantly raise their target prices. Despite a recent rebound in share price, analysts argue that Hyundai remains undervalued compared to global peers—particularly Toyota—while holding long-term competitive advantages in robotics, electric vehicles, and physical AI.

Target Price Upgrades Signal a Shift in Market Perception

Daol Investment & Securities recently raised Hyundai Motor’s target price from KRW 470,000 to KRW 640,000, citing structural changes rather than short-term momentum. According to analyst Ji-Woong Yoo, the revision reflects improvements in manufacturing competitiveness driven by the commercialization of Boston Dynamics, as well as the future equity value of Hyundai’s stake in the robotics company.

Shinhan Investment Corp echoed this optimism, increasing its target price from KRW 410,000 to KRW 590,000. Both firms emphasized that Hyundai should no longer be treated as a traditional automaker but as a diversified mobility and AI-driven manufacturing group.

Boston Dynamics: More Than Just Robots

Analysts stress that Boston Dynamics is not simply about producing tens of thousands of robots. Its commercialization represents a strategic shift in manufacturing sovereignty, especially in the United States, where production costs remain significantly higher than in China.

Within the next three years, humanoid robots are expected to be actively deployed in automotive factories. Analysts note that only Tesla and Hyundai Motor Group are realistically positioned to implement humanoid robots at scale in vehicle production lines. This capability could dramatically improve productivity, cost efficiency, and supply chain resilience.

Closing the Gap with Toyota

Hyundai’s global vehicle sales are projected to exceed 4.3 million units annually, translating to a market capitalization of approximately KRW 473 trillion. While Toyota sells over 10 million vehicles per year, analysts argue that valuation comparisons based solely on volume no longer tell the full story.

In areas such as robotics integration, U.S. manufacturing strategy, and global EV expansion, Hyundai is increasingly narrowing—or even surpassing—the gap. Despite this, Hyundai trades at a price-to-earnings ratio (PER) of around 8.3x, roughly 30% lower than Toyota’s 12.7x, suggesting meaningful upside potential.

Physical AI and the Future of the Auto Industry

Shinhan Investment highlights the growing importance of physical AI, where artificial intelligence directly controls real-world systems such as robots, factories, and vehicles. This evolution is expected to reshape the global automotive industry far beyond software-only autonomous driving.

Hyundai’s strong and stable cash flow allows the group to consistently invest in long-term growth engines, including robotics, AI, and next-generation mobility. Analysts argue that this financial resilience justifies a valuation premium, not a discount.

From Discount to Premium: A New Valuation Era

For years, Hyundai Motor has traded at a discount due to concerns over cyclicality and global competition. However, brokerages now suggest that the company’s transformation into a technology-driven mobility leader warrants a fundamental reassessment.

With robotics commercialization, expanding EV leadership, and early dominance in physical AI applications, Hyundai Motor is increasingly positioned as a long-term structural winner rather than a value trap.

Conclusion: A Re-Rating in Progress

The recent target price upgrades are not simply reactions to short-term stock movements. They reflect a deeper recognition that Hyundai Motor’s business model is evolving faster than the market has priced in.

As the gap with global peers narrows and new growth engines mature, Hyundai Motor may be entering a new phase—one where investors begin to assign not a discount, but a premium valuation.

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