Morgan Stanley has upgraded LG Electronics from "hold" to "overweight," citing the company and its subsidiary LG Innotek as having distinct advantages in the next phase of the AI market rally. Following this news, LG Electronics shares surged 8.6%. Note: The stock went ex-dividend on Wednesday.
Morgan Stanley has sharply raised the price target for LG Electronics from 95,000 won to 260,000 won. LG Innotek shares rose as much as 7.1%. Morgan Stanley also upgraded LG Innotek from "hold" to "overweight," lifting its target price from 265,000 won to 640,000 won.
In a research report, Morgan Stanley analysts stated, "We believe the beneficiaries of the next phase of the AI rally will expand from semiconductors to smart hardware," and noted that these two companies are well-positioned in this area. For LG Display, Morgan Stanley maintained a "hold" rating, while lowering the price target from 16,800 won to 10,000 won.
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