LS's target price has been lowered.
Although stock prices are sluggish due to concerns over falling copper prices, it is expected that stock prices will recover due to a rebound in shipments of products such as wires in the fourth quarter.
Shinhan Financial Investment lowered its LS target price from 93,000 won to 83,000 won on the 16th. The investment opinion remained 'buy'.
"While global comparison companies such as Presemian and Nexance have changed their reported prices, LS's stock prices have been sluggish due to concerns over a fall in the same price," Shinhan Investment said. "A rebound in shipments of major products in the fourth quarter is expected to lead the stock price recovery.".
Due to the recovery of global wire demand, the current order backlog for its subsidiary LS Cable has reached a record high of 2.7 trillion won, up 15.9 percent from the same period in 2020. LS Cable's wire shipments are expected to recover in earnest from the fourth quarter of 2021.
Shinhan Financial Investment expects LS IND to recover its operating profit by enjoying favorable factors in expanding investment in 5G infrastructure in the U.S.
With the passage of the U.S. infrastructure budget bill, network infrastructure such as 5G is considered the biggest beneficiary industry.
LS is expected to generate sales of 13.15 trillion won and operating profit of 644 billion won on a consolidated basis in 2021. Sales are up 25.9% and operating profit is up 53.6% from 2020.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
