April 26, 2024

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[THE INVESTOR] LG Electronics’ third-quarter earnings will be slow, said NH Investment and Securities on Sept. 19, lowering the target price to 95,000 won (US$84.48) from 110,000 won. 

Its revenue in the period will come in at 15.9 trillion won and operating profit 745.5 billion won, missing market expectations. Operating loss from its vehicle components division would have grown from rise in costs, and mobile communications unit will underperform. Home electronics and home appliances sectors, however, will post robust results having improved product portfolios, said analyst Ko Jeong-woo.

Although burgeoning costs from vehicle component business is quite burdensome for now, it will propel the company’s growth in the future, noted the analyst maintaining a “buy” recommendation. 

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