LG Electronics saw securities firms raise stock target prices following the company's Q2 provisional earnings announcement on the 7th of this month. The electronics maker reported Q2 consolidated revenue of 23.8297 trillion won and operating profit of 1.5788 trillion won, representing a 146.9% year-over-year increase and significantly exceeding market consensus of around 1 trillion won. Seven securities firms that issued reports after the earnings release all raised their target prices for LG Electronics stocks, with the average target reaching 248,125 won — 26.7% above the current stock price of 195,800 won. The rerating reflects confirmation of profitability improvements across home appliances, TV, and vehicle components businesses, alongside emerging growth drivers in AI datacenter cooling solutions and robotics. Analysts noted the shift from viewing LG Electronics as a low-growth appliance stock to recognizing new narratives connecting AI infrastructure and physical AI businesses.
LG Electronics Reports Q2 Operating Profit of 1.5788 Trillion Won
LG Electronics recorded Q2 consolidated revenue of 23.8297 trillion won and operating profit of 1.5788 trillion won on a provisional basis. Operating profit increased 146.9% compared to the same period last year and substantially exceeded the market consensus of approximately 1 trillion won. The results included one-time factors such as tariff refunds, but securities firms assessed that core business profitability improvements were confirmed even excluding these items.
Securities Firms Raise Target Prices to Average 248,125 Won
Seven securities firms that published reports after the Q2 earnings announcement all raised their target prices for LG Electronics. Yuanta Securities raised its target from 140,000 won to 240,000 won. Hyundai Motor Securities increased its target from 140,000 won to 260,000 won, while Daishin Securities raised it from 160,000 won to 240,000 won. Samsung Securities adjusted its target from 170,000 won to 240,000 won. Daol Investment Securities raised its target from 160,000 won to 240,000 won, Meritz Securities from 120,000 won to 260,000 won, and DB Securities from 165,000 won to 245,000 won. The highest target price stands at 260,000 won and the lowest at 240,000 won.
![LG company logo visible in front of LG Twin Towers]()
Home Appliances and TV Segments Show Margin Defense
The home appliances division maintained margins through subscription services, online sales expansion, and increased premium product mix. The TV and media division performed better than expected due to sports event effects, expanded OLED TV sales, and fixed cost reductions. The vehicle components division showed stable profit foundations with ongoing profitability improvements across projects, according to analyst assessments.
AI Datacenter Cooling Solutions Enter Final Qualification Stage
LG Electronics possesses comprehensive cooling solutions for AI datacenters, including chillers, coolant distribution units (CDU), and cold plates, covering air cooling, liquid cooling, and building cooling systems. Qualification tests targeting North American hyperscalers have reached final stages. Ko Sun-young, researcher at Yuanta Securities, stated that "qualification tests for two North American big tech companies have reached final stages, raising expectations for orders in the second half," adding that "revenue recognition is typically possible within one year after qualification test completion, so contribution to ES (air conditioning and energy solutions) division performance could begin as early as the second half of next year."
Robotics Business Develops Actuators and NVIDIA Collaboration
LG Electronics is preparing robotics component business centered on actuators and expanding its business scope to home robots, industrial robots, and smart factory solutions. Yang Seung-soo, researcher at Meritz Securities, analyzed that "LG Electronics' robotics business is taking shape with actuators and home robots as two pillars," noting that "actuators are in the process of building an ecosystem with major domestic robot companies, raising expectations for core component internalization and supply expansion when the robot market opens." He added that "through physical AI collaboration with NVIDIA, the company plans to secure data in robot operating environments and advance algorithms, which will lead to strengthening robot platform capabilities beyond simple hardware supply."
![LG CLOi robots producing and learning data at LG Electronics' Yangjae Data Factory under construction]()
Analyst Outlook Focuses on Chiller Orders and Robotics Commercialization
Past revaluations of LG Electronics stocks relied heavily on home appliance profitability recovery or Apple Car expectations. Analysts note this rerating differs in that core business performance improvements, AI datacenter cooling, and robotics business materialization are occurring simultaneously. New businesses have not yet reached the stage of significant earnings contribution. Datacenter cooling solutions require time between order confirmation and revenue recognition, while robot actuators still face mass production verification and customer acquisition processes. Key observation points for the second half include chiller order confirmation and robotics business commercialization speed.
FAQ
What was LG Electronics' Q2 operating profit?
LG Electronics reported Q2 provisional operating profit of 1.5788 trillion won, up 146.9% year-over-year and exceeding market consensus of around 1 trillion won.
What is the average target price for LG Electronics stocks after Q2 results?
Seven securities firms set an average target price of 248,125 won for LG Electronics stocks following Q2 earnings, representing 26.7% upside from the current price of 195,800 won.
What new business areas are driving LG Electronics' stock rerating?
AI datacenter cooling solutions and robotics business are emerging as new growth drivers, with qualification tests for North American hyperscalers in final stages and actuator development progressing alongside NVIDIA collaboration on physical AI.
