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View of LG Innotek factory. (Photo=LG Innotek) |
[Alpha Biz= Reporter Kim Sangjin] Shinhan Investment Corp. has revised its target price for LG Innotek from 360,000 won to 320,000 won, citing negative implications from delays in the application of artificial intelligence (AI) features in the recently launched iPhone 16 series. Despite this, the firm maintains a "Buy" rating, highlighting that the outlook for improved smartphone demand due to expanded AI functionality remains valid.
Shinhan has lowered its third-quarter operating profit estimate for LG Innotek from 296.8 billion won to 252.1 billion won, while the estimate for the fourth quarter has been adjusted to 458.1 billion won. The analyst stated that the conservative estimates are due to the nature of AI features being accessible through updates after the launch of the new iPhone, despite the impressive AI capabilities showcased.
However, Shinhan Investment Corp. expects sales to improve once AI features are fully implemented. Analyst Oh remarked, “Consumer satisfaction is expected to enhance with the application of AI,” and noted that the recovery trend in sales of competing flagship models suggests a positive outlook for the sales of new products from major global vendors.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
