LG Chem stock price target raised to KRW360,000 by Nomura on potential stake sale

Published 08/08/2025, 09:16
LG Chem stock price target raised to KRW360,000 by Nomura on potential stake sale

Investing.com - Nomura/Instinet raised its price target on LG Chem Ltd (KS:051910) (OTC:LGCLF) to KRW360,000 from KRW300,000 while maintaining a Buy rating.

The research firm sees upside potential in LG Chem’s share price with possible catalysts including the disposal of its 81.8% stake in LG Energy Solution (KS:373220) and returning part of the proceeds to shareholders.

Nomura suggests that even a small percentage stake disposal may help reduce LG Chem’s valuation discount relative to its LG Energy Solution holdings, which had a market capitalization of KRW90 trillion as of August 7.

During its second-quarter earnings call on August 7, LG Chem management provided a cautious outlook for its cathode business, stating that shipments and profitability will likely deteriorate in the second half of 2025 due to conservative inventory management by OEMs.

The company also noted that chemical profitability remains challenged by regional oversupply, despite efforts by the Chinese government to restructure the industry.

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