Investing.com-- Morgan Stanley (NYSE:MS) resumed coverage of Hyundai (OTC:HYMTF) Motor (KS:005380) with a positive rating, stating that the automaker was better positioned to weather U.S. trade tariffs than most of its global peers.
MS rated Hyundai at Overweight with a price target of 300,000 won, indicating a 37% upside from the stock’s current levels.
The positive rating comes with Hyundai’s stock nursing a sharp decline from recent peaks. But MS analysts said most of Hyundai’s negatives were priced in with the correction.
“We see its product mix and geographical exposures providing relatively better earnings/margin protection compared to its global peers,” MS analysts wrote in a note.
MS also cited Hyundai’s recent listing of its Indian unit, Hyundai Motor India, as a catalyst for the stock.
Hyundai was nursing steep losses in recent sessions, as anticipation of increased U.S. trade tariffs under President-elect Donald Trump battered stocks with high exposure to exports.
But Hyundai’s export exposure extends beyond the U.S., with India serving as the country’s second biggest market after South Korea.
Hyundai is the world’s third-largest automaker by production.