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On Wednesday, BofA Securities analyst Sun Jung Lee upgraded LG Uplus Corp (KS:032640:KS) stock rating from Neutral to Buy and increased the price target to KRW15,000 from KRW12,000. The upgrade is attributed to positive expectations for the company’s operational performance and shareholder returns in the coming years.
Sun Jung Lee’s analysis indicates that LG Uplus is poised for operational profit growth of +17% year-over-year in 2025, following a forecasted decline in the previous two years. This growth is expected to be driven by effective cost control measures and the streamlining of less profitable business segments.
The analyst also projects an improvement in shareholder returns, anticipating a +22% year-over-year increase. The optimism is partly based on the expectation of strong first-quarter results, which are believed to have the potential to bolster investor confidence in the company.
The previous concerns over cost volatility and its impact on earnings and shareholder returns were noted. However, the analyst suggests that the anticipated solid performance in the initial quarter of the year could mitigate these issues and provide more clarity on the company’s financial trajectory.
BofA Securities’ revised price target reflects an upward revision in the estimated earnings per share (EPS) for 2025-26 and a more optimistic view on LG Uplus’s long-term growth prospects. The analyst’s commentary underscores the belief that LG Uplus is on track to overcome its short-term challenges and deliver value to its shareholders.
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