[Alpha Biz= Reporter Kim Sangjin] Daishin Securities has lowered its target price for LG Electronics from 140,000 won to 130,000 won, following a downtrend outlook since its March 2023 forecast of 150,000 won.

The firm cited a 21.2% reduction in its 2024 earnings per share (EPS) forecast. It also noted that LG Electronics' third-quarter operating profit is expected to be 751.1 billion won, falling 28.6% below its initial estimate of 1.05 trillion won and 26% below market consensus of 1.02 trillion won. The downgrade was attributed to weakened profitability in subsidiaries like LG Innotek, as well as in the vehicle component solutions (VS) and business solutions (BS) divisions.

The decline in demand for electric vehicles has also hurt sales and profits at LG Magna, while poor performance at LG Innotek contributed significantly to the overall drop in operating profit.

 

 

 

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