[Click eStock] "LG Electronics, Stock Undervalued Compared to Earnings... Target Price Up 15%"

[Asia Economy Reporter Park Jihwan] IBK Investment & Securities maintained a 'Buy' rating on LG Electronics on the 10th, stating that the stock price remains undervalued relative to its earnings, and raised the target price by 14.86% from 74,000 KRW to 85,000 KRW.

Researcher Kim Unho of IBK Investment & Securities said, "LG Electronics' second-quarter sales are expected to be 11.5805 trillion KRW, down 10.0% from the first quarter and 19.2% compared to the same period last year," adding, "Sales across all business divisions are expected to decline significantly year-on-year."

Operating profit for the second quarter is forecasted to be 339.2 billion KRW, down 64.3% from the first quarter of this year and 47.1% year-on-year. Excluding the MC division, operating profits in all other divisions are expected to decline sharply compared to the same period last year.

Researcher Kim Unho stated, "Operating profit in the third quarter is expected to increase slightly compared to the second quarter," and added, "The operating profit margin of the HE division, which was sluggish in the second quarter, is expected to normalize in the third quarter, and the deficit in the MC division is also expected to gradually decrease."

He explained, "Although the stock price has steadily risen after a sharp drop recently, it is still undervalued relative to the company's value," and added, "Annual operating profit is expected to exceed 1.7 trillion KRW, and demand for related products will continue after the stabilization of COVID-19."

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