April 26, 2024

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[THE INVESTOR] LG Electronics will post solid earnings in the first quarter, said NH Investment and Securities on March 28, raising the target price to 90,000 won (US$80.86) from 65,000 won.

Its revenue will reach 14.8 trillion won with operating profit of 772.9 billion won, estimated analyst Go Jeong-woo. The unit sale price of smartphones will be maintained by the launch of G6, and combined with the expansion in Latin America, it will boost the mobile sector’s operating income, said the analyst. 

Home electronics and home appliances will maintain the level from a year ago while vehicle component division will continue the upturn as the shipment of car infotainment and parts for electric vehicles rises, explained Go.

The current stock price reflects burden from short-term stock price surge and the possibility of decrease in smartphone sales following Samsung’s launch of Galaxy S8, explained the analyst. 

Go, however, maintained a “buy” recommendation saying that the mobile division is headed in a positive direction and the home electronics and home appliance divisions have stabilized from an adequate mix of products. 

By Hwang You-mee (glamazon@heraldcorp.com)