NH Investment & Securities recommended buying LG Energy Solution after January next year. The target price was lowered from 500,000 won to 440,000 won. The investment opinion remains "buy."
Jumin Woo, a researcher at NH Investment & Securities, noted that "demand for Europe and GM is weak, leading to a delay in sales recovery." However, "the benefits from Tesla's new vehicle launch remain valid, so buying is recommended after January."
NH Investment & Securities estimated that LG Energy Solution's fourth-quarter revenue would decrease by 16% year-on-year to 670 million won, with an operating loss expected to reach 258.4 billion won.
The chief researcher explained that "sales of both automotive batteries and energy storage system (ESS) batteries were sluggish, and sales to GM, which are more profitable, also slowed by 33% compared to the previous quarter, reducing margins."