[Featured Stock] LG Energy Solution Rises 2.95% on Expansion of Cylindrical Battery Sales

The stock price of LG Energy Solution, expected to improve its performance due to the gradual increase in demand for cylindrical batteries, is on the rise.

As of 9:32 a.m. on the 10th, LG Energy Solution was trading at 349,000 won, up 10,000 won (2.95%) from the previous trading day.

Heungkuk Securities maintained a buy rating on LG Energy Solution on the same day. However, the target price was lowered to 450,000 won. Researcher Jeong Jin-su of Heungkuk Securities analyzed, "Sales of medium-to-large batteries are likely to be sluggish until the first quarter of this year, but on the other hand, the visibility of demand for cylindrical batteries is expected to increase."

Researcher Jeong said, "The energy storage system (ESS) segment saw a sharp decline in sales compared to the previous quarter due to the postponement of customer projects," adding, "This will be offset by seasonal demand accompanying the operation of the new North American ESS production line in the second half of the year, compensating for the sluggish sales in the first half."

He added, "The sales volume of cylindrical batteries has been gradually increasing since the low point in the third quarter of last year," and "The schedule for Tesla's new Model Y in Europe and India has been moved up earlier than initially expected, so initial demand for the new product is expected to concentrate in March and April."