April 20, 2024

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[THE INVESTOR] LG Electronics seems to be ready to tackle safeguard restrictions in the US, said NH Investment and Securities on Oct. 11, maintaining a “buy” recommendation and 105,000 won (US$92.54) target price. 

Investors are deeply concerned about the US ITC’s Oct. 19 hearings on the safeguard petition filed by Whirlpool, but it remains to be see whether it will hurt sales of LG’s washing machines in the US, pointed out analyst Ko Jeong-woo. 

The electronics giant has countermeasures in place such as beginning operations of its washer factory in Tennessee, US, in the second half of next year and utilizing a manufacturing facility in South Gyeongsang Province in Korea, explained the analyst, adding that its home appliance sales in the US account for 3 percent of its annual income. 

Its stock price fairly reflects the safeguard issue along withthe Nokia patent royalty cost too, and the possibility of a further drop is limited, noted Ko.

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