[Market Focus] LG Chem Surges Over 5% as Brokerages Raise Target Prices

LG Chem showed strong performance in early trading on July 21. The buying trend appears to be driven by expectations of improved earnings in the second half of the year.

As of 10:00 a.m. on this day, LG Chem's share price was up 5.87% from the previous trading day, reaching 288,500 won. The stock opened at 273,000 won and has continued to increase its gains.

On this day, the securities industry projected that LG Chem's earnings would bottom out in the second quarter and rebound going forward. Kim Dohyun, an analyst at Kiwoom Securities, stated, "Considering both the improvement in cathode material performance and the recovery in petrochemical earnings in the second half, there is ample room for further gains." He added, "While the cumulative effect of China's economic stimulus measures continues, the spread for specific products such as ABS is also improving." Based on this, he raised his target price by 30% to 340,000 won.

Choi Younggwang, an analyst at NH Investment & Securities, also commented, "Shipments of cathode materials for non-captive (non-existing fixed customer) clients are scheduled to begin at the end of the year." He continued, "Based on expanded sales from increased production capacity next year and the easing of the reverse lagging effect (selling petroleum products refined from previously purchased expensive crude oil at lower prices), a gradual recovery in earnings is expected." He raised his target price from 250,000 won to 370,000 won.