[THE INVESTOR] LG Electronics
shares hit a 52-week high on March 8, and edged closer to an all-time high, as the Korean tech giant prepares to launch its new flagship smartphone LG G6 later this week.
Shares rose 2.53 percent to close at 64,900 won (US$56.51), at one point trading as high as 65,400 won, its highest level over the past year.Related:
Full transcript of interview with LG mobile chief
Preorders are soaring for the new G6 with the largest-ever 5.7-inch screen that covers almost all part of the front body. More than 10,000 preorders are being made every day before its official launch on March 10.
Analysts say the stock could continue its rally on high expectations about the company’s positive earnings surprise in the first quarter.
Kiwoom Securities more than doubled the company’s earnings estimate from the previous 316.7 billion won to 736.7 billion won, citing its upbeat sales of high-priced premium alliances and TVs.
The securities firm also raised the stock’s target price from 80,000 won to 85,000 won.
“Despite growing costs, premium products will elevate profitability overall,” said Kim Ji-san, an analyst at Kiwoom. “The money-losing smartphone business is also expected to reduce almost 100 billion won in operating loss.”
By Lee Ji-yoon (email@example.com