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[Apha Biz=(Chicago) Reporter Paul Lee] NH Investment & Securities lowered its earnings forecast for LG Electronics and lowered its target stock price from 170,000 won to 130,000 won on the 21st, saying the recovery in demand for home appliances and TVs is slower than expected. The investment opinion remained 'buy'.
"LG Electronics' demand for home appliances and TVs continues to weaken in major markets such as North America, Europe and domestic demand," NH Investment & Securities said, explaining that it has lowered its operating profit estimates for this year and next year by 6.7% and 10.6%, respectively.
As a result, LG Electronics' operating profit estimates for this year and next year are around 3.755 trillion won and 4.36 trillion won, respectively.
"We initially expected a gradual improvement in demand thanks to the recovery of transactions in the macro and real estate markets in the second half of 2023, but the recovery will be delayed more than expected," he said in the case of home appliances. "A full-fledged recovery is expected to be possible after the first half of next year, and the continued slowdown in demand for high-priced TVs is also a negative factor."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
