"LG: Notable AI Growth in Affiliates and Strong Investment Suitability"[Click e-Stock]

BNK Securities Raises LG Target Price
From 115,000 Won to 150,000 Won

On August 26, BNK Securities maintained its 'Buy' investment rating on LG and raised its target price from 115,000 won to 150,000 won.

Jangwon Kim, an analyst at BNK Securities, stated, "We evaluate LG as a holding company that combines both growth potential and investment suitability, thanks to its future-oriented business developments." He added that automotive parts, physical AI, and artificial intelligence (AI) data centers are the new growth engines for LG Group. According to him, these are areas where LG excels and possesses internalized capabilities, with most affiliates participating in these businesses either directly or indirectly.

In particular, he projected that resource-concentrated management could prove effective in new information technology (IT) growth sectors where business capability and speed are key. Analyst Kim emphasized, "In an era flooded with AI, the development and acquisition of proprietary languages by AI researchers will drive service expansion. This shift makes LG not just a group focused on control, but the central decision-maker for growth within the group, highlighting the importance of internal synergy."

He further noted, "Before looking at changes in affiliate value, attention should be paid to the holding company. The overall growth of the group feeds into higher holding company value, and the narrowing discount rate between the company's net asset value and its current share price is also a positive signal."

This content was produced with the assistance of AI translation services.