View of LG Innotek factory. (Photo=LG Innotek)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] Hi Investment & Securities lowered LG Innotek's target stock price by 15.2%. It reflects the decline in Apple's iPhone share and doubts about AI strategy.

"We will maintain our investment opinion, but adjust the target price from KRW 330,000 to KRW 280,000," Hi Investment & Securities said. "The stock price fell 18% compared to the beginning of the year due to concerns about falling iPhone market share and doubts about Apple's artificial intelligence (AI) strategy."

"If the hardware upgrade of the next iPhone is not big, there will be a limit to the function that can be implemented as a lightweight AI model," Hi Investment & Securities said. "If it is true that it will work with other big tech companies such as Google to implement cloud-based AI, it is necessary to confirm how it can be differentiated from other competitors."

However, it also raised the opinion that the low point purchase is a valid section.

Hi Investment & Securities estimates that both LG Innotek's first-quarter sales and operating profit will rise 2 percent and 38 percent to 4.8 trillion won and 4.8 trillion won, respectively, from previous estimates.

 

 

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