Update shared on 03 Dec 2025
Fair value Increased 0.35%Analysts have modestly raised their price target on LG Electronics to approximately ₩104,722 from about ₩104,352, citing a slightly richer assumed future P/E multiple. This more than offsets minor trims to long term profit margin and revenue growth forecasts, even after factoring in a higher discount rate.
What's in the News
- LG Electronics appointed Lyu Jae cheol as Chief Executive Officer effective December 1, 2025, succeeding William Cho and signaling continuity in its strategy to expand beyond home appliances while scaling subscription, D2C and B2B models (Key Developments).
- The company announced wide ranging organizational changes for 2026 to streamline overlapping functions, strengthen decision making within its four Company structure and create new growth engines in HVAC, webOS, robotics and next generation computing (Key Developments).
- LG is accelerating expansion in high potential B2B and advanced technology domains, including establishing new HVAC and data center cooling divisions, an HS Robotics Lab and a Next Generation Computing Lab focused on quantum and distributed computing (Key Developments).
- Nanoco Group and LG Electronics reached a no fault settlement of their litigation, with LG agreeing to pay USD 5 million to resolve the dispute, removing a small legal overhang for the company (Key Developments).
- LG continues to scale its premium SKS appliance brand in North America with the opening of the SKS Chicago Showroom at THE MART, reinforcing its presence in the luxury built in kitchen market and supporting design and builder channels (Key Developments).
Valuation Changes
- Fair Value Estimate increased slightly to approximately ₩104,722 from about ₩104,352, reflecting a marginally more optimistic intrinsic valuation.
- Discount Rate rose slightly to about 11.13 percent from roughly 11.03 percent, implying a modestly higher required return and risk assumption.
- Revenue Growth was trimmed fractionally to around 3.73 percent from approximately 3.73 percent, indicating a nearly unchanged long-term top-line outlook.
- Net Profit Margin was reduced slightly to about 2.69 percent from roughly 2.76 percent, signaling a minor downgrade to long-term profitability expectations.
- Future P/E increased modestly to around 9.76 times from about 9.46 times, supporting the higher fair value estimate despite softer margin and growth assumptions.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.