(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] On August 28, DB Financial Investment reduced LG Chem's target price from 580,000 won to 450,000 won, marking the lowest target price since 950,000 won was set in April 2023. The stock closed at 31,900 won on August 27.

DB Financial cited an increase in the discount rate for LG Energy Solution’s equity value to 70% as a key reason for the adjustment. The firm noted that the target price is now set at a trailing P/B ratio of 0.75x, lower than during the financial crisis (0.9x) and COVID-19 (1.0x), indicating ongoing de-rating.

Excluding LG Energy Solution, LG Chem's operating profit is projected to rebound from a low of -90.8 billion won in Q4 2023 to 210.6 billion won by Q2 2024.

 

 

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