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[Alpha Biz=(Chicago) Reporter Kim Jisun] Samsung Securities lowered its target stock price from 740,000 won to 660,000 won on the 22nd, saying LG Energy Solutions' second-half earnings are expected to fall below market forecasts.
"We will lower our target price by 11% to reflect a drop in the valuation ratio of global battery makers," Samsung Securities said in a stock report. "There are still concerns over weak demand due to price competition from front companies."
The target stock price of KRW 660,000 was calculated by lowering the multiples applied to the 12-month pre-amortization operating profit (EBITDA) from 29.2 times to 26.8 times.
LG Energy Solutions' third-quarter operating profit estimate was 668.3 billion won, 6% lower than the market consensus (average performance forecast), and its fourth-quarter operating profit is expected to be below 9%.
However, it is necessary to lower expectations for performance in the second half of the year, but it is predicted that investor sentiment will recover afterwards. Investment opinions also maintained a 'buy'.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
