Citi sets 400,000-won (~$263) target; BofA sets 350,000-won target
Analysts cite positive outlook on robotics, Nvidia partnership
LG Electronics is drawing attention as it accelerates its transformation into a physical AI company. The market expects the company to distinguish itself in AI and robotics by leveraging the research and development capabilities it has built up over the years. Several brokerages have responded by setting a target price of 400,000 won for the stock.
Citi Securities raised its target price for LG Electronics to 400,000 won on Tuesday, a 135 percent jump from its previous target of 170,000 won, according to the financial investment industry on Wednesday.
In a research note, Citi said LG Electronics is "shifting its business growth focus from home appliances to physical AI," adding that the company will "diversify its robot portfolio to cover both home and industrial applications, establish itself as a comprehensive robotics solutions provider, and effectively absorb physical AI demand on the back of leading R&D capabilities in AI and robotics."
Citi went on to say it expects LG Electronics to expand its competitiveness in the robotics market by applying motor technology accumulated in the home appliance sector, and to generate synergies with Bear Robotics, its commercial service robot subsidiary.
The brokerage particularly highlighted LG Electronics' partnership with Nvidia in robotics, AI data centers and autonomous driving as a positive factor accelerating its physical AI transition.
Nvidia CEO Jensen Huang, who visited South Korea, met LG Group Chairman Koo Kwang-mo on June 8 to forge a medium-to-long-term cooperation agreement covering physical AI, AI infrastructure and mobility. The two companies agreed to build a next-generation physical AI ecosystem — combining Nvidia's AI platform with LG's capabilities in home appliances, robotics, mobility and AI infrastructure — spanning AI model development, robot training and operation, and digital twin construction.
Bank of America also recently raised its target price for LG Electronics to 350,000 won. BofA said it expects LG Electronics to "continue generating long-term growth opportunities through close collaboration with major US technology companies, including Microsoft, Google, Amazon, Meta, Nvidia and Tesla."
With foreign brokerages raising their LG Electronics targets in quick succession, attention is now turning to how domestic securities firms will respond.
LG Electronics' share price has already surpassed every domestic brokerage's target. Hana Securities had set the highest domestic target at 230,000 won on May 14. The stock was trading at 234,750 won as of 9:31 a.m. Wednesday and had soared to a closing price of 392,500 won on June 2.
"LG Electronics' share price appears to be at a critical inflection point," a securities industry official said. "The stock has surged sharply as physical AI draws attention, but domestic brokerages' target prices are still stuck in the 160,000-to-170,000-won range. We expect a series of upward target revisions that better reflect market expectations."
yuni@heraldcorp.com
