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View of LG Innotek factory. (Photo=LG Innotek) |
[Alpha Biz= Reporter Kim Sangjin] KB Securities has forecasted that LG Innotek's stock has substantial potential for growth and could achieve new highs this year. The investment recommendation remains "Buy," with the target price maintained at 400,000 won.
In a report released on the 29th, KB Securities stated that the recent decline in LG Innotek's stock price is considered a temporary adjustment, given the expected peak performance in the second half of the year.
The report further noted, “Starting next year, LG Innotek's net income attributable to shareholders is expected to stabilize around 1 trillion won, with performance improvement potentially exceeding expectations. However, given that LG Innotek’s current valuation is at the historical lower end of the past decade, the risk of further stock price decline is limited. The company’s fair market capitalization is estimated to be up to 10 trillion won (42,000 won per share), so considering the current market capitalization of 6 trillion won, the stock price is expected to achieve new highs this year, focusing on its growth potential.”
LG Innotek’s stock price has fallen 14% over the past two weeks due to concerns about reduced iPhone demand and increased competition. However, the upcoming launch of the AI iPhone (iPhone 16) in the third quarter is expected to provide momentum.
KB Securities projected that LG Innotek’s operating profit in the second half of the year will increase by 151% compared to the first half, reaching 821 billion won, which would be the highest since the second half of 2021.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
