[Click eStock] LG Display 'Hold'... Quarterly Loss Leads to Lowered Target Price

[Asia Economy Reporter Lee Seon-ae] Cape Investment & Securities announced on the 6th that it has given LG Display a 'Neutral (Hold)' investment rating and lowered the target price from 20,000 KRW to 17,000 KRW. The quarterly deficit is the reason for the target price downgrade. The target price has been continuously lowered since it was set at 32,000 KRW in April 2021. The closing price on the 5th was 14,950 KRW.

Park Seong-sun, a researcher at Cape Investment & Securities, stated, "Further reduction of the LCD business is expected," adding, "During the restructuring process toward OLED, weak demand for WOLED and uncertainty in attracting new clients will act as short-term burdens on the stock price." He also noted, "For LCD TV panels, a reduction in operating rates by Chinese panel manufacturers is a prerequisite for mitigating price declines," and added, "Even if operating rate adjustments occur, due to weak TV demand, a price rebound within the year seems unlikely, so a conservative view should be maintained."

Second-quarter earnings are expected to fall short of market expectations. Sales are projected at 5.8 trillion KRW, with an operating loss of 413.1 billion KRW. For this year, sales are forecasted at 26.1 trillion KRW, with an operating loss of 252.6 billion KRW. These represent a 12.75% decrease and a return to deficit compared to the previous year, respectively.

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