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[Apha Biz=(Chicago) Reporter Paul Lee] Shares of LG Electronics have fallen -16% in the past month.
Stock markets positively forecast LG Electronics' outlook for its electronics business in the second half of the year and predict that stock prices could rebound in the fourth quarter.
According to the Korea Exchange on the 8th, LG Electronics' stock price closed at 103,100 won, down 500 won (-0.48%) from the previous trading day.
Shares of LG Electronics, which stood at 80,000 won at the beginning of the year, continued to rise steadily this year, rising to 120,000 won at the end of May. On the 13th of last month, LG Electronics announced its vision to achieve 100 trillion won in sales by 2030, soaring to 125,400 won the next day. However, stock prices have been weak in the past month, falling -16.17%.
LG Electronics' market capitalization, which recaptured 20 trillion won for the first time since April last year in the KOSPI market, shrank to 16.9048 trillion won the previous day.
The move is attributed to weak investor sentiment due to second-quarter earnings below market expectations and growing concerns that uncertainties in IT demand will continue in the second half. LG Electronics' consolidated sales for the second quarter rose 2.7% year-on-year to 19.9984 trillion won, the highest ever. However, operating profit fell 6.3% year-on-year to 741.9 billion won.
NH Investment & Securities explained, "Our second-quarter earnings fell below estimates due to rising marketing costs and reflection of recall-related provisions amid sluggish demand for IT sets such as home appliances and TVs."
Stock markets forecast that although the TV industry will remain sluggish in the second half of the year, it will maintain a surplus due to its profitability-oriented sales strategy and good performance on the battlefield.
It also raised its target price from 150,000 won to 170,000 won.
SK Securities raised its target price of LG Electronics from 138,000 won to 150,000 won.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
