Yuanta Securities Boosts LG Innotek Target Price to 1.4 Million Won, Cites Substrate Business Growth

Yuanta Securities has significantly increased its target price for LG Innotek, raising it from 850,000 won to 1.4 million won. The firm maintained its 'BUY' investment rating for the company, signaling strong confidence in its future performance.

The upgrade reflects Yuanta Securities' view that LG Innotek's substrate business is emerging as a new growth engine, complementing its established strength in the optical sector, particularly camera modules. This dual-pillar growth strategy is seen as a key driver for the company's valuation.

According to Ko Sun-young, an analyst at Yuanta Securities, the substrate business is now solidifying its position as a growth driver, in addition to the company's traditional core competency in optics. This diversification and expansion of its business portfolio are expected to contribute to sustained growth.

In the previous trading session, LG Innotek's stock closed at 1.095 million won. The revised target price suggests that Yuanta Securities anticipates substantial appreciation in the company's stock value, driven by the combined performance of its optical and substrate divisions.