[THE INVESTOR] LG Electronics’ stock price is not fully reflecting its improved operating profit, said IBK Securities on May 25, maintaining a “buy” recommendation and 140,000 won (US$129.49) target price. 

Its business division is strengthening competitiveness and although its mobile communications sector is struggling, home electronics and home appliances units will top 3 trillion won in annual operating profit, said analysts Kim Un-ho and Shin Woo-cheol.

Revenue from vehicle components sector will be close to 1 trillion won by the third quarter and may secure profitability. It will gain significantly when acquisition of Austrian automotive lighting manufacturer ZKW is reflected from the fourth quarter, they underlined. 

Excluding earnings of LG Innotek, the electronics giant’s revenue in the second quarter will rise 5.9 percent on-year to 14.29 trillion won and operating profit by 37.1 percent to 881.1 billion won, estimated the analysts.
By Hwang You-mee (glamazon@heraldcorp.com)