[Market Focus] Nexen Tire Surges Over 9% on Strong Results Despite Tariff Concerns

Nexen Tire's stock price is showing strength after overcoming concerns over U.S.-imposed tariffs and delivering strong results in the third quarter of this year.

As of 1:35 p.m. on November 6, Nexen Tire was trading at 6,790 won, up 590 won (9.52%) from the previous trading day.

On this day, DB Securities maintained its "Buy" rating and a target price of 8,000 won for Nexen Tire, stating, "Despite unfavorable conditions such as U.S. tariffs, the company has maintained solid performance through increased operating rates at its second plant in the Czech Republic, price hikes, and the expansion of premium products in Europe."

In the third quarter, Nexen Tire recorded an operating profit of 46.5 billion won (down 11% year-on-year, up 9% quarter-on-quarter, with an operating margin of 6.0%), surpassing the market consensus of 42.6 billion won.

Nam Jooshin, a researcher at DB Securities, said, "Sales volumes increased in Europe (up 18% year-on-year) and Korea (up 21% year-on-year), and the company posted strong results thanks to price increases, favorable exchange rates, and lower costs.

He added, "By region, in Europe, the expansion of new supplies to original equipment (OE) manufacturers, as well as increased sales of high-margin products such as all-weather, electric vehicle (EV), and winter tires, drove performance. In Korea, the launch of new OE EV models and the expansion of rental services contributed to an increased share of high-inch tires (49.5%)."

He also stated, "The stock price has been excessively neglected in the market due to concerns over external conditions," adding, "Next year, the company is expected to demonstrate resilience that exceeds market concerns, driven by the 15% U.S. tariff, a higher proportion of high-inch tires, a greater share of EV tires, and price increases."

This content was produced with the assistance of AI translation services.