Kiwoom Securities has raised its target price for LG to 200,000 won, citing an increase in net asset value (NAV) driven by rising stock prices of key subsidiaries and the growing competitiveness of new business areas such as AI and robotics. The firm maintained its 'buy' rating on the stock.
Analyst Ahn Young-jun noted, "LG's NAV recently reached a record high of 37.5 trillion won," attributing this growth to the rising stock prices of major listed subsidiaries like LG Electronics and LG CNS. He added that the NAV discount rate has decreased to around 40%, down from 45% at the end of last year, indicating an improvement in market perception of LG.
Ahn particularly highlighted LG's capabilities in AI. He stated, "The recent rise in the stock prices of group companies reflects the growth potential of new businesses in AI and robotics," and emphasized that LG stands to benefit not only from the increase in NAV due to rising subsidiary stock prices but also from the enhancement of the group's new business capabilities.
A key asset is identified as the LG AI Research Institute. Ahn mentioned, "The AI model 'EXAONE' developed by LG AI Research Institute ranked first in the initial evaluation of the national AI project in January, proving its competitiveness," and he anticipates that LG's AI capabilities will be further highlighted during the second evaluation scheduled for August.
He added, "The rising value of LG AI Research Institute is likely to be linked to an expansion in LG's corporate value due to its share structure." Ahn concluded, "As the corporate value of AI model development companies is rapidly increasing, LG's capabilities in AI model development will gradually be reflected in its stock price, and expectations for expanded investments in new businesses based on its cash assets remain valid."
* This article has been translated by AI.
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