NH Investment & Securities evaluated on the 21st that expectations for LG CHEM's performance recovery are gradually increasing. NH Investment & Securities maintained a 'buy' investment opinion on LG CHEM and raised the target price from 250,000 won to 370,000 won. This is 28.4% higher than the closing price on the 18th (272,500 won).
Choi Young-kwang, a researcher at NH Investment & Securities, noted that the expectations for recovery in cathode materials performance have been reflected in the target price. This is because China is currently working to alleviate supply overhang, and lithium prices have also rebounded.
Choi said, "LG CHEM is expected to begin shipping cathode materials to non-affiliated companies by the end of this year, and the expansion of production facilities in 2026 will lead to increased sales and a gradual performance recovery."
The decision to reduce the discount rate on LG Energy Solution's operating value is also behind Choi's upward revision of LG CHEM's target price. He stated, "I believe that the likelihood of LG CHEM leveraging some of its holdings in LG Energy Solution (81.8%) is increasing," adding, "Like domestic holding companies, LG CHEM is expected to face increasing demands from shareholders to enhance asset efficiency."