[THE INVESTOR] LIG Nex1 will inevitably turn to red in the fourth quarter, said Cape Investment and Securities on Nov. 29, downgrading the recommendation to a “hold” and lowering the target price to 67,000 won (US$61.83) from 90,000 won.
It lowered its revenue guidance by 7.7 percent to 1.84 trillion won and operating profit by 60 percent to 46.8 billion won this year, virtually predicting that it will make losses, according to analyst Choi Jin-myeong.
The defense manufacturer is one of the most guarded companies but from the data revealed, it will not be able to avoid turning to red as it struggles to win overseas orders and has difficulties in developing projects, underlined the analyst.
It does have opportunities for growth through overseas orders but the lack of transparency leaves investors to depend solely on its earnings and they should approach with prudence until it shows significant improvement, said Choi.
By Hwang You-mee (firstname.lastname@example.org)