[Click eStock] "LG Energy Solution, US Investment Quadrupled... Target Price Up"

Daishin Securities announced on the 27th that it is raising the target price for LG Energy Solution from 600,000 KRW to 650,000 KRW. This is due to the expectation of rapid growth centered in North America, as LG Energy Solution recently increased its investment scale in the US battery plant to four times the original plan.

LG Energy Solution is expected to record sales of 8.6 trillion KRW in the first quarter, nearly double that of the same period last year, and operating profit of 501 billion KRW, also twice as much. This figure exceeds the market expectation (455 billion KRW) by about 10%. It is understood that shipments have increased due to strong demand in Europe, North America, and China from major electric vehicle customers such as Volkswagen, GM, and Tesla.

In particular, LG Energy Solution expanded its investment in the Arizona battery plant in the US from 1.7 trillion KRW to 7.2 trillion KRW, a fourfold increase. This reflects the growing demand for electric vehicles (EV) and energy storage systems (ESS), as well as the battery manufacturing tax credit benefits provided under the Inflation Reduction Act (IRA).

Chun Chang-hyun, a researcher at Daishin Securities, said, "The proportion of North American capacity is expected to expand to 45% by 2025, and rapid growth centered in North America is expected to continue."