[Click eStock] "LG Energy Solution, Weak EV Demand Despite Peak Season... Target Price Down"

Daishin Securities lowered the target price for LG Energy Solution from 750,000 KRW to 600,000 KRW on the 26th. The investment rating was maintained as 'Buy.'

LG Energy Solution is estimated to have recorded sales of 8.2 trillion KRW and an operating profit of 731.2 billion KRW in the third quarter. This represents increases of 7.5% and 40.1%, respectively, compared to the same period last year, exceeding market expectations. However, compared to the previous quarter, sales decreased by about 6% due to weak demand from European electric vehicle (EV) customers and price reductions linked to metal prices.

The outlook for the fourth quarter is not optimistic. Daishin Securities expects the operating profit for the fourth quarter to decrease by 19% from the previous quarter to 595.5 billion KRW.

Jeon Chang-hyun, a researcher at Daishin Securities, said, "The possibility of volume adjustments due to weakening demand from major EV customers continues," adding, "Despite the seasonal peak season, sales and profitability are expected to underperform compared to expectations due to price reductions lagging metal prices."

However, he added, "Since the stock price has also fallen correspondingly, a buying approach from a mid-term perspective remains valid," and "To achieve a short-term stock price increase, confirming a recovery in EV purchase demand is a prerequisite."

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