LG Electronics' stock price rose by over 15% in early trading, driven by optimism surrounding its new robotics business.
According to the Korea Exchange, as of 9:46 a.m. on May 15, LG Electronics shares were trading at 249,000 won, up 14.75% or 32,000 won from the previous trading day.
The company's stock has been on the rise since May 8, following a reassessment of its valuation related to the robotics initiative.
With significant capital inflow into LG Electronics, shares of the broader LG Group also experienced gains. LG's stock was trading at 137,300 won, up 17.35% or 20,300 won. Additionally, LG Corp. shares rose by 10.53%, while LG Electronics preferred shares increased by 7.56%.
Other LG affiliates, including LG CNS (up 6.74%), LG Innotek (up 7.11%), and LG Display (up 3.06%), also showed strong performance, contributing to a collective rise in LG Group stocks.
Analysts expressed optimism about the potential expansion of LG Electronics' robotics business. Hana Financial Investment recently raised its target price for LG Electronics to 230,000 won, an increase from its previous estimate.
Kim Min-kyung, an analyst at Hana Financial Investment, stated, "Despite the ongoing unfavorable business environment, LG Electronics is expected to secure profit resilience through company-wide cost structure improvements and efficient marketing spending, while aggressively pursuing growth in its robotics-related new business."
* This article has been translated by AI.
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