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[Alpha Biz=(Chicago) Reporter Paul Lee] IBK Investment & Securities lowered LG Electronics' target price from 140,000 won to 120,000 won on the 26th. It returns to the level presented in January 2023. In other words, the target stock price has returned its growth in a year.
"We have lowered our application valuation due to concerns over slowing growth," said IBK Investment & Securities. "It is regrettable that operating profit in the fourth quarter of 2023 is sluggish, but the recent drop in stock prices has fully reflected this."
Excluding LG Innotek, LG Electronics' operating loss in the fourth quarter of 2023 is 174.9 billion won. It was sluggish compared to the previous forecast. It is estimated that worsening cost structure due to intensifying competition and sluggish product mix is the cause.
IBK Investment & Securities said, "H & A operating profit shifted to a deficit compared to the fourth quarter of 2022. There are various variables such as increased marketing costs, increased year-end inventory handling costs, and worsening profitability due to increased entry volume."
LG Electronics' sales in the first quarter of 2024 were expected to be 16.8351 trillion won. Operating profit is expected to be 1.924 trillion won, down 19.6% from the first quarter of 2023.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
