[Click eStock] "LG Electronics, Turning Point for Corporate Value Expansion... Target Price Maintained"

Daishin Securities evaluated that LG Electronics is at a turning point for corporate value expansion as of the 3rd. They maintained a 'Buy' investment rating and a target price of 140,000 KRW.

Daishin Securities forecasted that LG Electronics' consolidated sales for the third quarter will increase by 6.2% year-on-year to 22 trillion KRW, and operating profit for the same period will rise by 5.6% to 1.05 trillion KRW.

Park Kang-ho, a researcher at Daishin Securities, said, "Although it is a period of weakening profit momentum, improved performance compared to the previous year is expected due to a stable portfolio in divisions such as home appliances and TVs," adding, "Attention should be paid to changes in the business portfolio and undervaluation in valuation rather than short-term performance."

LG Electronics is attempting to transform from a traditional home appliance company into a smart life solutions company. Researcher Park stated, "We expect a revaluation of corporate value through new growth businesses and expanded competitiveness," and judged that "this is a turning point for corporate value expansion that can resolve undervaluation compared to other IT companies."

He also added, "In the fourth quarter, shareholder return policies such as dividends and share buybacks to enhance corporate value are expected to expand compared to before."

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