[Click eStock] "LG Electronics, Sufficient Potential for Stock Price Increase... Target Price Up"

Meritz Securities raised the target price for LG Electronics from 150,000 KRW to 165,000 KRW on the 22nd.

LG Electronics' second-quarter earnings are expected to meet market expectations with sales of 19.8 trillion KRW and operating profit of 973.4 billion KRW. Although global demand for key items such as TVs and laptops is slowing, the home appliances segment is maintaining relatively healthy demand, mainly in the premium line. Both the HE and BS divisions have healthy distribution inventory levels, making it likely to sustain a profitable trend. The VS division is under pressure from rising raw material costs, but profitability-focused order intake is expected to continue driving growth in both revenue and profit.

Raw material prices, which surged last year, have recently entered a downward stabilization phase. In particular, the VS division, a core driver of LG Electronics' mid- to long-term growth, is expected to see additional profitability improvements through leverage effects following the start of operations at the Mexico plant in the second half of this year.

Researcher Yang Seung-su of Meritz Securities said, "This year, LG Electronics' relative earnings superiority stands out, and a favorable exchange rate environment is expected in the second half, which will be positive for the stock price." He added, "Considering the still reasonable valuation level, we believe there is sufficient room for the stock price to rise."

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