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NH Securities: LG Innotek's concerns over rising memory prices are excessive; long-term contracts expected
🇰🇷 South Korea /Economy & Trade

NH Securities: LG Innotek's concerns over rising memory prices are excessive; long-term contracts expected

From Chosun Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

Analysis Named sources Context piece
  • NH Investment & Securities maintains a 'Buy' rating on LG Innotek.
  • The firm believes concerns about rising memory chip prices impacting LG Innotek are excessive.
  • However, the target price was lowered from 1.2 million won to 1 million won due to a general valuation decline in the sector.

NH Investment & Securities has maintained its 'Buy' investment opinion on LG Innotek, asserting that recent concerns about rising memory chip prices leading to price cuts are an overreaction. The brokerage firm believes these worries are excessive and do not fully reflect the company's long-term supply contracts.

Despite the positive outlook on LG Innotek's specific situation, NH Investment & Securities has adjusted its target price downwards. The target price has been lowered from 1.2 million won to 1 million won. This revision is attributed to a broader decline in valuation across the industry, reflecting current market conditions and sector-wide trends.

Analyst Hwang Ji-hyun of NH Investment & Securities noted that the recent stock underperformance is linked to the rising memory chip prices. However, the firm's analysis suggests that LG Innotek is well-positioned to navigate these challenges, likely due to its strategic partnerships and long-term agreements that mitigate the immediate impact of market price fluctuations.

DistantNews Editorial

Originally published by Chosun Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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