Won Appreciation Impacts Hyundai Mobis: Nomura Lowers Target Price to 470,000 Won but Maintains Buy Rating

(1) Nomura analyst Angela Hong stated that a stronger Korean won could drag down Hyundai Mobis’s earnings. (2) The South Korean auto parts supplier remains highly sensitive to the won’s appreciation against the dollar because a large portion of its aftermarket parts are sourced from Korea and exported globally. (3) According to Hong, since the won has risen 13% against the dollar since July, Nomura has revised its earnings per share forecast for the company down by 8% for this year and by 10% for next year. (4) She added, however, that the company's existing local inventory may help cushion immediate foreign exchange headwinds. (5) Nomura lowered its target price for the stock from 560,000 won to 470,000 won but maintained a buy rating. (6) The shares dropped 3.2% to 382,000 won.