LG Electronics will improve significantly in home appliances sector, said Kiwoom Securities on Feb. 12 raising the target price to 110,000 won (US$97.80) from 100,000 won and maintaining a “buy” recommendation.
Its first-quarter operating profit will surpass 756.6 billion won market estimates, as high-end home appliances contribute more while health-conscious products such as dryers and air purifiers sales remain strong.
Televisions will gain from stabilizing panel prices and favorable exchange rates and loss from smartphone division will shrink in tandem with declining raw material prices, forecast the analyst, said analyst Kim Ji-san.
Its earnings will remain on an upturn for the time being and boost its stock price, he noted, adding that the firm needs to be reevaluated as a global market leader.
By Hwang You-mee (firstname.lastname@example.org)