Hyundai Motor shares near halved from peak as brokerages slash price targets

"Better than Samsung Electronics and SK hynix, they said."

Hyundai Motor's share price, which once approached 800,000 won, has tumbled to the 300,000-won range. The stock had surged on excitement over the company's physical AI robot business, earning praise as a stronger bet than Samsung Electronics or SK hynix — but Hyundai Motor has failed to recover even as the broader market rebounds, and continues to slide.

Retail investors sitting on heavy losses are growing increasingly anxious.

Hyundai Motor shares closed at 366,500 won ($266) on Friday, more than halving from their peak. Earlier this year, some brokerages had floated a target price as high as 1.2 million won for the stock.

The company is counting on a second-half new-model lineup and the Genesis GV90 — a full-size luxury electric SUV — to stage a recovery, but a string of headwinds has proved too much to overcome. Analysts say fading enthusiasm for the robot business, slowing earnings and an unfavorable market environment have all weighed on the share price.

Multiple brokerages have been cutting their Hyundai Motor price targets in succession. NH Investment & Securities lowered its target from 760,000 won to 620,000 won, while Samsung Securities cut its target from 600,000 won to 500,000 won. Meritz Securities trimmed its target from 770,000 won to 680,000 won. Kyobo Securities (800,000 won → 740,000 won), Heungkuk Securities (880,000 won → 720,000 won), Hana Securities (760,000 won → 650,000 won), Korea Investment & Securities (770,000 won → 640,000 won) and Yuanta Securities Korea (690,000 won → 570,000 won) also lowered their targets.

Samsung Securities said it expects earnings to slow in the third quarter due to a labor strike and a stronger won, adding that the won's appreciation will continue to weigh on results through next year.

Eugene Investment & Securities said the wait for a recovery in Hyundai Motor's earnings will be a long one.

Meritz Securities said competitive pressures in South Korea, the United States and India are intensifying, and recommended that investors hold the automotive sector at an underweight position relative to the broader market, citing expectations of further downward revisions to earnings forecasts.

Retail investors are also in a bind. Nearly half of those holding Hyundai Motor shares are believed to have bought near the stock's peak. A recent 120-day supply-zone chart shows more than 40 percent of total outstanding shares were purchased at 600,000 won or above, with more than 10 percent accumulated at 700,000 won or higher — leaving a significant number of investors nursing steep losses.