(Photo = Yonhap news)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] NH Investment & Securities raised its target stock price to 380,000 won on the 28th, saying LG Household & Health Care is expected to surpass the consensus on the back of a recovery in sales in China and improved profit and loss in the first quarter. However, the investment opinion remained 'neutral'.

NH Investment & Securities explained the background of the increase in target stock prices, saying, "We raised our operating profit estimates for this year and next year by 7-8%, respectively, as we raised our profit estimates in the cosmetics sector."

NH Investment & Securities raised its annual operating profit estimate for this year from 532 billion won to 569 billion won, and its annual operating profit for next year from 568 billion won to 613 billion won, respectively.

NH Investment & Securities added, "We will be able to enjoy the base effect for the time being because our earnings expectations have been low due to the gap in sales of China-related channels over the past two years."

Consolidated operating profit in the first quarter of this year is expected to reach 133 billion won, down 9% from the same period last year.

[ⓒ AlphaBIZ. 무단전재-재배포 금지]