KB Securities noted on the 30th that it expects improved performance from subsidiaries engaged in the power infrastructure business for LS. It maintained a 'buy' rating and raised the target price from 160,000 won to 210,000 won, an increase of 31.3%. LS's closing price on the previous trading day was 161,200 won.
Park Geon-young, a researcher at KB Securities, said, "LS is expected to see performance improvement over the next three years," adding that "attention should be paid to the performance improvement of its subsidiaries, including LS ELECTRIC and LS Cable & System, which operate in the power infrastructure business."
According to KB Securities, LS ELECTRIC is expected to expand orders for distribution boards aimed at artificial intelligence (AI) data centers from major U.S. tech companies this year. Additionally, LS Cable & System is projected to see improved profitability due to an increase in sales of high-value products like underwater cables starting next year.
Park's judgment is that the attractiveness of the holding company is significant. He stated, "Stock prices of holding companies are hitting record highs due to the expanded potential for corporate value enhancement and policy expectations," and added that "if shareholder return rates are expanded and policy reforms are implemented simultaneously, it may be possible to reduce the discount on the net worth (NAV) of holding companies."
Based on the performance improvements of key subsidiaries and the potential for enhanced corporate value, he identified LS as a top pick among holding companies expected to see stock price increases in the medium to long term.