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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] On September 3, Daishin Securities maintained a "Buy" rating and a target price of ₩140,000 for LG Electronics (066570), citing the company's potential to outperform the IT sector in terms of returns this month. The previous day's closing price was ₩101,600.
Daishin Securities highlighted concerns about the potential slowdown in semiconductor growth and ongoing debates over Nvidia's (AI) earnings and stock peak. Given these factors, the firm recommended focusing on electronics, particularly LG Electronics, over semiconductors.
The report praised LG Electronics for its solid performance in Q3 and Q4 of this year, noting that the company has been transitioning towards a B2B-focused portfolio and expanding into new growth areas. This strategic shift is seen as part of LG's efforts to become a more future-oriented company.
Additionally, Daishin Securities mentioned that LG Electronics is expected to announce plans for enhancing corporate value in Q4. The anticipated value-up initiatives are backed by LG’s recent disclosure of plans to buy approximately ₩5 trillion worth of shares in LG Electronics (₩200 billion) and LG Chem (₩300 billion), which is seen as a significant positive signal for investors.
The firm also anticipated an expansion in shareholder return policies, including increased dividends and share buybacks, which is expected to enhance investor interest and support the stock price.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
