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Investing.com - UBS upgraded LG Display Co Ltd. (NYSE:LPL) from Sell to Neutral and raised its price target to KRW14,000 from KRW10,500, citing expectations for faster earnings improvement in the company’s White OLED panel business.
LG Display’s WOLED business returned to profitability in the second quarter of 2025, its first profitable quarter since 2021. The turnaround resulted from cost reduction efforts, the phase-out of 45,000 substrates per month capacity in Paju which lowered fixed costs, and an improving OLED monitor mix.
UBS expects WOLED margins to further improve in the second half of 2025 as depreciation and amortization costs for LG Display’s Guangzhou facility begin to decrease. The firm projects WOLED panel business operating profit to reach KRW308 billion in 2025 and KRW484 billion in 2026, representing operating profit margins of 6.8% and 9.8% respectively.
Despite LG Display stock having rallied 47% year-to-date and currently trading at 0.90 times next twelve months book value, UBS sees a balanced risk-reward profile. The firm notes this valuation sits between the historical average and one standard deviation above, at 0.83x-1.1x.
UBS now forecasts LG Display’s return on equity to range between approximately 7%-10% from 2026 to 2030, compared to the -30% to 13% range seen from 2015 to 2024, with a long-term ROE projection of 8.6%.
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