The securities industry is raising its target price for LG Electronics in quick succession. With a second-quarter earnings surprise reaffirming the stable profitability of its core businesses and expectations for growth in new businesses such as robots and data center cooling solutions reflected, it is seen as the result.
After LG Electronics released its preliminary second-quarter results on the 7th, six of seven domestic securities firms that issued corporate analysis reports—Hyundai Motor, DB, Samsung, Daol, Yuanta, and Daishin Securities—raised their target prices. Hana Securities kept its existing target price of 260,000 won. The average target price among the seven securities firms rose to 246,400 won, more than 75,000 won higher than before. Foreign securities firms such as HSBC and CGSI also raised their targets to 280,000 won and 270,000 won, respectively.
Daol Investment & Securities said, "What matters more than the surprise is the structural change," adding, "We confirmed the basic strength that allows the core businesses to serve as a stable cash cow and support the capacity to invest in new businesses."
Regarding the data center cooling solutions business, it said that if orders from big-tech hyperscalers materialize in the second half of this year, they could translate into revenue starting in the second half of 2027. It added that with the expansion of the Asian market, opportunities are opening for Taiwanese and Korean companies to expand their share in a market previously centered on North American and European players, and analyzed that LG Electronics is highly likely to benefit.
Daishin Securities said that even excluding the tariff refund effect, revenue and operating profit in the HS (home appliances) and MS (TV) businesses beat market expectations, and noted that new growth businesses such as expanded cooperation with global corporations in AI and the pursuit of the robot business are also progressing smoothly.
Yuanta Securities Korea cited, in relation to the robot components business, high efficiency on a same-size basis and the ability to leverage existing heat dissipation technology as strengths. It projected that once the pilot line goes into operation in the second half, revenue contribution will begin in earnest next year.
LG Electronics is also accelerating its robot business recently. Through a one-point organizational reorganization, the company newly established a robot business center reporting directly to the CEO and integrated business development, sales, and operations functions. At the Yangjae R&D Campus in Seocho-gu, Seoul, it is building a large-scale data factory for robot training, with the goal of starting operations within the year.
The securities industry believes that when the results of future businesses such as robots and data center cooling solutions become fully visible, there is a possibility of a further revaluation of LG Electronics' corporate value.