Daishin Securities Co. said on the 11th that LG Electronics is likely to enter a recovery phase in earnings in the first quarter of next year (January–March). It kept its "Buy" rating and raised its target price to 130,000 won from 105,000 won. LG Electronics' closing price the previous day was 94,500 won.
Park Kang-ho, an analyst at Daishin Securities Co., said, "An upward revision in valuation is possible with an earnings recovery in the first quarter of next year and a portfolio shift from the perspective of new growth," adding, "The current share price, with a price-to-book ratio (PBR) of 0.7 times, appears undervalued."
Park said, "Next year, the home appliances division (HS) will show sales growth as it rolls out new premium-centered products and responds to U.S. tariff policy with measures such as price increases," adding, "The TV division (MS) is expected to swing to an operating profit by focusing on premium QLED while expanding the lineup within entry-level models."
In addition, it saw the potential to secure additional competitiveness by promoting the robot business, including humanoids. LG Electronics is independently pursuing robot businesses such as Smart Factory, and it has affiliates including LG Innotek that handle key components.
Park added, "It is possible to create synergies through equity investments in companies such as ROBOTIS," and "It is possible to form strategic relationships with global corporations in promoting humanoids and robots."