[Click eStock] "LG Electronics, OLED Sales Increase Due to Olympic Demand... Target Price Up"

Shinyoung Securities analyzed that demand for organic light-emitting diode (OLED) TVs will increase due to the Paris Olympics, and maintained a 'Buy' investment rating on LG Electronics, raising the target price to 150,000 KRW.

Choi Jun-young, a researcher at Shinyoung Securities, stated, "LG Electronics' OLED TV shipments in 2024 are expected to reach 3.3 million units, a 12% increase compared to the previous year."

Researcher Choi added, "Global OLED shipments in the second quarter are expected to be about 1.4 million units, a 23% increase year-on-year due to the Olympic event," and analyzed, "the trend of expanding LG Electronics' OLED TV sales, centered in Europe, appears to continue following the first quarter."

Along with this, the recovery in demand for volume-zone home appliances, mainly in emerging markets, is also expected to continue. Researcher Choi explained, "considering the global OLED TV demand recovery, the recovery of home appliance demand centered on emerging markets, and a solid automotive order backlog of about 100 trillion KRW, the target price was revised upward."

Meanwhile, LG Electronics' provisional consolidated operating profit for the second quarter was 1.1961 trillion KRW, a 61% increase year-on-year, and sales reached 21.7 trillion KRW, up 9%. These figures exceeded consensus estimates by 22% and 2%, respectively.