Hyundai Heavy Industries Co., whose stock more than quadrupled this year, rose to a record in Seoul trading after analysts raised their share-price targets by as much as 41 percent on an optimistic earnings outlook, according to a Bloomberg report
The world's biggest shipbuilder gained 4.1 percent to $581.49, the highest since they started trading in August 1999. The stock is the best performer of the 50 biggest companies in South Korea's Kospi index this year.
Yards in South Korea, the world's largest shipbuilding country, are reporting record earnings this year on demand for vessels to transport raw materials to China and finished goods to the U.S. and Europe. Shipbuilding accounts for about half of Hyundai Heavy's sales. The company also makes marine engines and develops electronics.
CJ Investment & Securities Co. increased its target price for Hyundai Heavy to $714.19 from $507.92. Korea Investment & Securities Co. raised its share-price estimate to $767.91 from $548.51. Woori Investment & Securities Co. boosted its projection to $713.13 from $592.45.
Hyundai Heavy yesterday
said third-quarter profit more than doubled to a record of $479m after it raised vessel prices and as China's trade with Europe and the U.S. spurred demand for ships. That compares with a $433.4m average of 12 analyst estimates compiled by Bloomberg.