KB Securities stated on the 12th that LG Electronics' stock price is recording a historical low, presenting an attractive entry point.
Kim Dong-won, a researcher at KB Securities, noted in a report on LG Electronics that "LG Electronics' stock price is currently recording a historical low P/B (price-to-book ratio) of 0.7 due to concerns over tariffs from former President Donald Trump."
The researcher predicted, "This year, LG Electronics' home appliances (H&A) operating profit is estimated to reach 2.3 trillion won, a 10% increase from the previous year, driven by strong sales of premium products and a decline in logistics costs that has reached its peak, marking the largest performance in history."
The researcher continued, "Although LG Electronics' current stock price recorded weakness due to concerns over tariffs at the beginning of former President Trump's first term in 2017, considering past cases where it rose more than twice over one year due to strong appliance performance, now presents an attractive entry point."
The expectation of an increase in LG Electronics' stock price is also being fueled by the upcoming meeting with Satya Nadella, the CEO of Microsoft, who is visiting Korea on the 26th. This comes amid observations of an alliance in artificial intelligence (AI) and quantum computing.
The researcher remarked, "LG Electronics, evaluated as the front-runner in quantum computing development in Korea, joined the IBM Quantum Network in January 2022 and is pursuing the development of superconducting qubit-based quantum computer technology."