Nomura Securities analyst Eon Hwang has expressed concerns that the high valuation of Korean shipbuilding stocks may face a correction in the latter half of the year. According to Jin10, Hwang noted that while the market's expectations for increased defense contracts and rising freight rates, influenced by the Suez Canal and Hormuz Strait, may support valuations in the first half of the year, the subsequent decline in new ship prices and easing tensions in the Middle East have led Nomura to adopt a cautious outlook for the second half. Nomura has downgraded Hyundai Heavy Industries from neutral to reduce, lowering its target price by 33% to 350,000 KRW. The rating for its intermediate holding company, HD Korea Shipbuilding & Offshore Engineering, has also been downgraded from buy to neutral, with the target price reduced by 33% to 410,000 KRW.