[THE INVESTOR] LG Uplus will rally when 5G technology is commercialized, said Hana Financial Investment, maintaining a “buy” recommendation and 20,000 won (US$17.80) target price. The securities firm also suggested the company as a “top pick” in the telecommunications industry. 

The full introduction of the technology will lead to an increase in traffic, and subsequently upselling in fare plans and expectations for long-term profitability are growing as well, said analyst Kim Hong-sik, adding that second-quarter earnings will remain solid. 

If it succeeds in acquiring CJ Hello, LG Uplus’ multiple is likely to be raised, and its dividends this year might further rise, as its dividend policy is based on former audit standards, according to the analyst.

Its only weakness has been foreign investors’ sales, but the trend has definitely slowed down after their stake fell below 36 percent, said Kim. It is rather hard to find unfavorable factors now and it is headed upwards only, underlined the analyst, advising investors to buy stock aggressively. 

By Hwang You-mee (glamazon@heraldcorp.com)