[Featured Stock] LG Energy Solution, Target Price Raised '3% Uptrend'

LG Energy Solution's stock price is rising by over 3% in early trading on the 22nd. The upward revision of the target price report based on earnings expectations released that day is interpreted as having a positive impact on the stock price increase.

As of 9:44 AM on the day, LG Energy Solution is trading at 564,000 KRW, up 3.30% compared to the previous trading day.

On the same day, NH Investment & Securities maintained a buy rating on LG Energy Solution and raised the target price by 6% to 650,000 KRW. This reflects a 5% upward revision of earnings forecasts, considering that the 2022 KWh unit price was slightly higher than the company's estimate, as revealed in the business report.

Juminwoo, a researcher at NH Investment & Securities, said, "The stock price of the secondary battery sector rose reflecting expectations for demand recovery due to new car launches and promotions to be confirmed after the Inflation Reduction Act (IRA) was finalized, expectations for multiple new supply contracts and expansion announcements, and the anticipated effect of reflecting AMPC (Advanced Manufacturing Production Credit) earnings." He added, "After the IRA was finalized, the phase is expected to shift from the realm of expectations to the phase of confirming numbers."

First-quarter sales are expected to reach 8.6 trillion KRW, and operating profit is expected to be 519.7 billion KRW, exceeding consensus by 7% and 15%, respectively. Despite the off-season, steady EV demand and favorable exchange rates are expected to drive growth in automotive batteries and small batteries sales to 5.6 trillion KRW and 2.5 trillion KRW, respectively, compared to the previous quarter.