LG Energy Solution's Price Targets Cut 15-17% Amid ESS Bottleneck Delays on July 8

According to Guru Club, on July 8, NH Investment Securities and Eugin Investment Securities lowered LG Energy Solution's price targets by 17% to 480,000 Korean won and 15% to 470,000 won, respectively, citing energy storage system (ESS) assembly bottlenecks and delayed compensation payments from major customers.

While the battery maker posted a quarterly return to profitability, operating profit fell sharply when excluding a 241-billion-won subsidy from the U.S. Inflation Reduction Act (IRA). Excluding this one-time credit, the company recorded an operating loss of 127.7 billion won for the quarter, marking three consecutive quarters of losses. Analysts attributed the underperformance to ESS pack supply chain constraints and ramping-up costs at new manufacturing facilities.