[THE INVESTOR] LG Uplus will continue to improve, said IBK Investment and Securities on Aug. 7, maintaining a “buy” recommendation and raising the target price to 20,000 won (US$17.76) from 18,000 won.
It maintained strong earnings momentum in the second quarter, and although rate regulations have been imposed, revenue remained stable and profits increased. As subscription stabilizes, the telecoms company’s earnings will improve, said analyst Kim Jang-won, raising the annual operating profit estimate up 4.5 percent to 807 billion won.
Cost control will be key to profitability, as competition increases. Despite the unfavorable environment, the number of subscribers is increasing and the firm offers customers lots of choice in differentiated contents, the analyst added.
By Hwang You-mee (glamazon@heraldcorp.com)