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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] KB Securities raised its target price for LG Electronics from the previous 150,000 won to 160,000 won, marking a 6.7% increase. The firm maintained its "buy" rating.
The revision comes on the back of anticipated growth in LG Electronics' business-to-business (B2B) performance, particularly in areas like artificial intelligence (AI) data center cooling systems. KB Securities forecasts a substantial increase in LG Electronics' net profit attributable to the parent company in 2024, estimating it to reach 2.5 trillion won, marking a 246% surge compared to the previous year.
The second quarter of this year is expected to witness LG Electronics achieve its highest-ever performance, driven by strong results in its home appliance and automotive components businesses. The consolidated operating profit for the second quarter is anticipated to be around 1.2 trillion won, a 59% increase compared to the same period last year. This figure significantly surpasses the existing consensus among securities analysts by more than 20%.
Particularly noteworthy is the high-growth potential of LG Electronics' AI data center cooling systems, supplied recently to big tech firms in North America. These cooling systems are highly competitive due to their high energy efficiency, which helps reduce cooling power costs.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
