The US International Trade Commission’s recommendations for higher tariffs on washers imported from Korea will actually have limited effect on LG Electronics
, said Daishin Securities on Nov. 23, maintaining a “buy” recommendation and 100,000 won (US$91.98) target price.
If US President Donald Trump does ratify the safeguard measures, its washer exports will temporarily slow down but the effect will be limited, according to analyst Park Gang-ho.
Washer exports to North America will focus more on enhancing profitability than on expanding market share and it will raise the portion of high-end products among 1.2 million units shipped annually, explained the analyst. LG could also expand the ratio of products manufactured in the US by moving up the opening of factory in Tennessee, he added.
Demand for smart and higher-end products has been on the rise and imposing of safeguard measures would accelerate Korean home appliance makers’ shift to premium range, noted Park.
By Hwang You-mee (email@example.com