Arab Today, arab today lg price target cut on share sale plan
Last Updated : GMT 14:44:30
Arab Today, arab today
Arab Today, arab today

LG price target cut on share sale plan

Arab Today, arab today

Arab Today, arab today LG price target cut on share sale plan

Seoul - Yonhap

South Korean brokerages lowered their price targets on LG Electronics Inc. on Friday, a day after the world\'s third-largest handset maker announced a plan for a 1.06 trillion won (US$953 million) share sale. LG Electronics confirmed reports Thursday that it plans to issue new shares to raise capital for investments in its struggling mobile division and other core businesses. Under the plan, LG Electronics will sell 19 million new stocks at 55,900 won per share. They will be listed on the bourse on Jan. 9. The announcement came after shares of LG Electronics and its affiliates took a blow from earlier reports on the rights offering. LG Electronics plunged 13.73 percent, while LG Display Co. slumped 6.32 percent and LG Corp. dropped 9.89 percent. A spate of securities firms cut their price targets for the tech heavyweight, citing soured investor sentiment and concerns about a share dilution. \"There are doubts on the purpose of the share plan since LG Electronics already has no problem in short-term liquidity,\" Samsung Securities Co. analyst Kim Jong-wan said in a report. \"Whether the plan was aimed for new investments, capital procurement or a possible corporate overhaul, they all lead to increased uncertainty for shareholders,\" Kim said, slashing the 12-month price target to 67,000 won from 90,000 won. Hanhwa Securities Co. cut its six-month price target to 91,000 won from 100,000 won, and HI Investment & Securities Co. lowered the corresponding figure to 70,000 won from 74,000 won. Analysts, however, said a further downfall in LG Electronics\' share price is unlikely as the negative impacts have mostly been factored in Thursday\'s near-14 percent plunge. \"Unless the company goes aboard to take part in mergers and acquisitions such as that of Hynix Semiconductor Inc., the negative influence is expected to be limited,\" said Kim Ji-san, an analyst at Kiwoom Securities Co. Some, meanwhile, retained their price targets on hopes the tech heavyweight will pull off a turnaround in its sluggish mobile phone business and see improved earnings next year. \"There are disappointment and concern over the sale plan. The company\'s share price may likely undergo an adjustment in the short-term,\" Park Seong-min, a tech analyst at Kyobo Securities Co., said by phone. \"But its adoption of new smartphone models and a pick-up in television business points to room for profit improvement. After all, earnings are the biggest deciding factors for large-cap share prices,\" Park said, maintaining the six-month price target at 94,000 won. Shares of LG Electronics closed down 0.81 percent at 61,100 won. In contrast, other LG Group shares returned to positive territory, with LG Display jumping 8.14 percent to 23,250 won and LG gaining 4.14 percent to 57,900 won.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today lg price target cut on share sale plan Arab Today, arab today lg price target cut on share sale plan

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today lg price target cut on share sale plan Arab Today, arab today lg price target cut on share sale plan

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Writing's on the wall for Trump, Zuckerberg

GMT 09:05 2017 Thursday ,19 October

Writing's on the wall for Trump, Zuckerberg
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday