Samsung Securities has raised its target price for LG Electronics (066570) by 41% to ₩240,000 (approximately $158.21) from ₩170,000 (approximately $112.06), identifying the company’s artificial intelligence cooling solutions and robotics businesses as new growth engines. The brokerage maintained its “Buy” rating.
In a report released on July 8, Samsung Securities raised its full-year operating profit estimate for LG Electronics by 15% to ₩4.4 trillion (approximately $2.9 billion), incorporating one-time factors including a second-quarter earnings surprise and tariff refunds. While these one-time gains will fade next year, the brokerage projects stable profit growth of ₩4.1 trillion (approximately $2.7 billion).
“The growth of the AI data center cooling solutions business will begin contributing meaningfully to LG Electronics’ earnings from 2027, becoming a key growth driver following the automotive electronics business,” said Lee Jong-wook, an analyst at Samsung Securities. “Based on the growing order backlog since 2024, the company appears capable of achieving ₩1 trillion in revenue next year, and this will likely serve as a key trigger for valuation re-rating ahead of the year when full-scale revenue begins.”
Samsung Securities highlighted LG Electronics’ competitive lineup spanning chillers, coolant distribution units (CDUs), and cold plates in the AI data center cooling market. The company is further strengthening its competitiveness by possessing the technical capability to integrate air cooling, liquid cooling, and building cooling solutions. “The company has secured orders from AI data center customers of meaningful scale and will begin supply this year,” Lee noted.
Regarding the robotics business, Samsung Securities expressed the view that while commercialization remains some time away, it will serve as a foundation for a stock price premium. LG Electronics is currently developing its industrial robot business based on Bear Robotics’ technology as an extension of its smart factory solutions. Notably, the first commercial product featuring actuators — a core component for robot motion — is set to be unveiled starting in the third quarter of this year. LG Electronics plans to install these actuators in its own robots while also pursuing external sales.
“LG Electronics is materializing robotics as a future business and is developing data factory and robot learning initiatives through collaboration with Nvidia,” Lee added. This is interpreted as a factor supporting the long-term growth narrative from the perspective of combining AI infrastructure with robotics.
The target price upgrade reflects the convergence of LG Electronics’ improving earnings trajectory and the increasing visibility of its new businesses. Samsung Securities’ assessment is that the expansion of the company’s business portfolio from its traditional home appliance and automotive electronics-centered profit structure into AI infrastructure and robotics could trigger a full-scale revaluation of its corporate value. LG Electronics shares were trading in the ₩180,000 (approximately $118.66) range during the morning session, hovering near their highest levels of the year.