NH Investment & Securities Raises Hyundai Department Store Target Price to 140,000 Won

Despite the headwinds faced by its subsidiary Zinus, Hyundai Department Store has demonstrated remarkable resilience, posting strong first-quarter earnings. NH Investment & Securities has taken note, reaffirming its 'Buy' recommendation and adjusting its target price upward to 140,000 won, a significant increase from the previous 130,000 won.

The brokerage highlights that the robust performance of the department store division was instrumental in counteracting the underperformance of Zinus. This suggests a healthy internal diversification within Hyundai's business structure, where the core retail operations are capable of absorbing and compensating for weaknesses in other segments.

Furthermore, the report points to the positive impact of increased spending by foreign tourists, a crucial demographic for the South Korean retail sector. This influx of international visitors not only boosts immediate sales but also enhances the global profile of Korean brands and shopping destinations. The sustained 'Buy' rating from NH Investment & Securities signals confidence in Hyundai Department Store's ability to navigate market challenges and capitalize on growth opportunities, particularly in the high-spending tourist segment.