[Featured Stock] L&F Surges 18% on Tesla Beneficiary Outlook

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] On the 24th, L&F is soaring as it is expected to be the biggest beneficiary if Tesla starts producing its own batteries.

On this day, L&F is trading on the KOSDAQ market at 187,400 won, up 18.04% (28,400 won) from the previous day. This is a 52-week high.

Earlier, Mirae Asset Securities announced that if a second large-scale cathode material order cycle has arrived for L&F, it has raised the target price to 260,000 won. Kim Cheol-jung, a researcher at Mirae Asset Securities, said, "Currently, the company's market capitalization is undervalued compared to competitors based on 2023 production capacity, sales, and operating profit," adding, "Since Tesla is forming a value chain for in-house battery production, it is expected to be the biggest beneficiary in the mid to long term when Tesla produces its own batteries."

Considering the scale of the first cycle orders and Tesla's expected sales volume, the order size for LG Energy Solution-Tesla NCMA (Nickel-Cobalt-Manganese-Aluminum) is expected to be around 5 trillion won in 2023-2024. The order size for SK Innovation's NCM (Nickel-Cobalt-Manganese) from 2024 to 2026 is expected to be around 4 to 5 trillion won.