LG Electronics jumped more than 6% in early trading on the 8th. After first-quarter results beat market expectations the previous day and brokerages raised their target prices one after another, buying appears to be piling in.
As of 9:35 a.m. on the day, LG Electronics was trading at 114,000 won on the Korea Exchange, up 6,900 won (6.44%) from the previous session.
LG Electronics said in a filing on the 7th that, on a consolidation basis, preliminary first-quarter revenue came to 23.733 trillion won and operating profit to 1.6736 trillion won. Both revenue and operating profit rose 4.4% and 32.9%, respectively, from a year earlier, marking the highest first-quarter revenue on record.
Hana Securities raised its target price for LG Electronics to 160,000 won from 140,000 won.
Kim Min-gyeong, a Hana Securities analyst, said, "Despite high external uncertainty, the company posted strong results, and it is positive that the Media Entertainment Solution (MS) division achieved structural profitability improvement through operational efficiency."
KB Securities and Samsung Securities also raised their target prices to 130,000 won and 140,000 won, from 100,000 won and 110,000 won, respectively.
Lee Jong-uk, a Samsung Securities analyst, said, "We think better-than-expected sales, coupled with cost control such as fixed-cost reductions and management efficiency, generated a leverage effect," adding, "For additional re-rating of the stock, it is necessary to prove competitiveness in new growth drivers rather than relying on the stability of existing businesses."