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Morgan Stanley (NYSE:MS) upgraded LG Display Co Ltd. (NYSE:LPL) from Underweight to Equalweight on Wednesday, raising its price target to KRW9,500.00 from KRW8,600.00.
The research firm lowered its 2025 revenue forecast for LG Display (KS:034220) from KRW25 trillion to KRW22 trillion, citing weaker USD/KRW exchange rates and muted demand expectations for the second half of 2025 following tariff-led demand pull-in.
Despite the revenue reduction, Morgan Stanley raised its operating profit estimate from KRW531 billion to KRW634 billion, reflecting an improved OLED product mix and the company’s decision to discontinue its LCD TV business.
The firm significantly increased its 2026 earnings per share estimate by 123% from a low base, incorporating higher expected profits from OLED contribution, while tempering its 2027 EPS forecast by 9%.
The new price target implies a price-to-book ratio of 0.75x for 2025 estimates, with Morgan Stanley noting that LG Display’s current next-twelve-month P/B ratio stands at 0.6x, near the historical mid-cycle level of 0.5x, and that positive earnings estimate revision trends support the current valuation.
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