April 25, 2024

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[THE INVESTOR] LG Uplus has slowed down in the wireless business, said SK Securities on May 8, lowering the target price to 16,000 won (US$14.84) from 17,000 won.

Its operating profit in the first quarter rose 20.8 percent on-year to 245.1 billion won but the wireless sector has been slow as subscription to optional fares and discount rate increased. Uncertainties in the telecom business environment, including introduction of universal rate plan and allotment of fifth-generation bandwidth, are likely to remain, said analyst Choi Gwan-sun.

In the latter half, however, expectations for 5G network service will rise and could push the stock price gradually, said the analyst maintaining a “buy” recommendation. 

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