[EQUITIES] ‘LG Display to swing back to red next year’
[THE INVESTOR] LG Display will turn to red again in the first half of 2019, said Eugene Investment and Securities on Oct. 11 maintaining a “hold” recommendation and lowering the target price to 21,500 won (US$18.83) from 24,000 won.
It will turn to black this year but will start facing losses considering the uncertain global economy. It is hard to be optimistic and predict that demand for higher-end OLED televisions will surpass market expectations, said analyst Lee Seung-woo.
With the US-China trade conflict far from over, the International Monetary Fund has lowered the 2019 growth rate estimates for major countries. The interest rates are also unstable, which only adds to the burden of the display maker especially when it needs the OLED TV market to expand and secure competitiveness, said the analyst.
By Hwang You-mee (firstname.lastname@example.org)