[EQUITIES] ‘Premium home appliances to propel LG Electronics’
[THE INVESTOR] LG Electronics will post strong earnings led by premium home appliance and television divisions, said Korea Investment and Securities on April 20, maintaining a “buy” recommendation and 96,000 won target price.
Its earnings surprise in the first quarter was largely due to improvement in the smartphone sector’s cost structure, but from the second quarter higher margins of home appliances and televisions will propel its stocks, said analyst Park Gi-heung.
The home appliance division will post record 8.5 percent operating profit ratio this year and home electronics 5.7 percent, forecast the analyst. The expansion of premium televisions’ share and stabilized price of panels are positive too, said Park.
By Hwang You-mee (firstname.lastname@example.org)