[Click eStock] "LG Electronics, Performance Growth Until Next Year... Undervalued Phase"

[Asia Economy Reporter Lee Jung-yoon] NH Investment & Securities initiated coverage on LG Electronics on the 14th, stating that its earnings growth trend will continue until 2024, with a buy rating and a target price of 150,000 KRW.

Researcher Lee Kyu-ha of NH Investment & Securities explained, "Demand for LG Electronics' major sets such as home appliances and TVs slowed down until the first half of this year due to the global macroeconomic downturn, but is expected to recover from the second half of this year through 2024, supported by a housing market recovery."

He added, "The core growth driver, the automotive parts division, is expected to show a full-fledged earnings increase, supported by expanded sales of high-margin products such as CID (Center Information Display) and digital cockpit in the infotainment sector, which is the existing main business, as well as the growth of LG Magna E-Powertrain."

LG Electronics' earnings are analyzed to show a faster-than-expected recovery starting from the first quarter of this year. In the second half, it is expected to show an increase compared to the previous year, and from 2024, it is anticipated to record full-scale growth.

Researcher Lee added, "Although LG Electronics' stock price has recently recovered quickly from its low point, considering the faster-than-expected earnings improvement and the attractive business structure in the mid to long term, it is still judged to be undervalued."

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