Figma Shares Indicated To Open $105/$110
On Friday, JPMorgan analyst Simon Hano increased the price target for LIG Nex1 Co Ltd (079550:KS) to KRW400,000 from the previous KRW340,000, while maintaining an Overweight rating on the stock. The adjustment follows LIG Nex1’s first-quarter sales and operating profit for 2025, which significantly surpassed JPMorgan’s expectations.
The strong financial performance was attributed to higher-than-anticipated domestic mass-production sales and profitability, as well as improved export margins. This improvement in export margins was noted especially in the absence of lower-profit radio sales to Indonesia. Despite this earnings outperformance, LIG Nex1 has decided to sustain its operating profit margin (OPM) guidance for 2025 at 7%, a figure that JPMorgan considers overly cautious.
JPMorgan’s outlook suggests that while LIG Nex1 may face increased cost pressures due to development expenses and capital expenditures, the company’s domestic margin profile has strengthened compared to previous years. This is partly due to a favorable government stance. Furthermore, the firm anticipates that sales contributions from the UAE M-SAM II will rise significantly starting from the fourth quarter of 2025, which should boost the overall operating profit margin.
Although the analyst anticipates that the stock’s price might experience short-term volatility due to a current lack of catalysts, the firm remains positive about LIG Nex1’s robust order pipeline, particularly in the Middle East region. This optimism, coupled with an improved earnings forecast and increased investor sentiment in the sector, has led to the raised price target for June 2026.
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