Merrill Lynch initiated coverage of Hyundai Motor with a “neutral” rating, citing weak domestic sales, fierce competition, rising raw material costs, a “rigid” labour union and a stronger domestic currency.
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Merrill also said Hyundai’s shares did not appear to be cheap, Reuters reported.
The US investment house expects Hyundai to post an earnings-per-share (EPS) of 6,356 won in 2006. It forecast an EPS of 7,034 won in 2007 and 7,949 won in 2008, the report added.
