April 20, 2024

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[THE INVESTOR] LG Chem will maintain the solid earnings trajectory, said Dongbu Securities on Oct. 27, raising the target price to 400,000 won (US$354.23) from 360,000 won. The securities firm downgraded its rating to a “hold” from a “buy,” though, saying that its stock price is rising at a faster speed than that of the earnings improvement.

Its third-quarter operating profit hiked 71.7 percent on-year to 789.7 billion won, beating market consensus, and earnings improved across sectors, said analyst Han Seung-jae. 

As it enters a low season in the fourth quarter the growth will slow down but battery unit will continue to remain strong, forecast the analyst. The profits from basic material and margins of IT batteries will push the net profit more than 10 percent higher next year, but there is not much room for its stocks to rise, noted Han.

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