[Click eStock] "LG Electronics, Weak Q4 but Recovery Next Year... Target Price Down"

Daishin Securities lowered the target price for LG Electronics from 150,000 KRW to 140,000 KRW on the 8th. The investment rating was maintained as 'Buy.'

LG Electronics is estimated to record consolidated sales of 23.2 trillion KRW and an operating profit of 482 billion KRW in the fourth quarter. However, on a standalone basis, LG Electronics is expected to underperform compared to previous estimates and market consensus. This is due to weak sales of premium products in the HE (TV) and H&A (home appliances) segments. Intensified competition likely led to higher-than-expected marketing expenses, resulting in a decline in profitability. The B2B segment is also expected to see lower sales and profitability compared to before due to the global economic slowdown.

However, sales and operating profit in the VS (vehicle components) division met estimates. Although the global electric vehicle sales slowdown is a burden, the electrification of automobiles and the high growth of LG Magna are viewed positively. Next year, with the Paris Olympics and the expansion of the premium (OLED) market, overall sales and operating profit are expected to recover.

Park Kang-ho, a researcher at Daishin Securities, said, "Although the fourth quarter is weak, the outlook for performance recovery next year remains valid," adding, "It is necessary to take a mid- to long-term approach from a valuation attractiveness perspective."

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