[Alpha Biz=(Chicago) Reporter Paul Lee] With the boom in secondary batteries and growing expectations for cathode materials, a key material, LG Chem's target stock price has recently been rising in the stock market. Attention is focusing on whether the stock price, which has already soared by 32% since the beginning of the year, can surpass 1 million won.
On the 17th, Samsung Securities raised its target price by 18% from 850,000 won to 1 million won, saying that LG Chem is expected to have a diversified portfolio.
"While the petrochemical industry continues to remain sluggish despite the re-opening in China, the company will record differentiated performance due to its strong battery-related business," Samsung Securities said. "The attractiveness of its diversified portfolio is expected to be more highlighted."
Operating profit in the first quarter of this year is expected to rise 266% on-quarter to 700.9 billion won, exceeding the consensus by more than 10%.
In fact, the battery sector (LG Energy Solution), which announced its tentative performance on the 7th, saw its operating profit rise 167% on-quarter to 633.2 billion won, exceeding market expectations.
Recently, NH Investment & Securities also raised its target price of LG Chem by 11% from 900,000 won to 1 million won.
Hi Investment & Securities said, "Considering the stable financial structure and some stake utilization scenarios of LG Energy Solutions, it will be possible to expand additional value chains such as copper foil in the future."
LG Chem's stock price, which stood at 604,000 won at the beginning of the year, has risen to 802,000 won at the closing price of the previous trading day due to growing expectations for secondary batteries.
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