[Edaily Reporter Kim Yoon-jung] SK Securities believes that #LG Display is entering a phase of significant capital expenditure (CAPEX) reduction and financial restructuring. The firm maintained a 'Buy' rating and set a target price of 20,000 won.

On the 11th, Park Hyung-woo, an analyst at SK Securities, stated, “The financial structure has been a burden for a long time,” adding, “We expect CAPEX to remain within 2 to 3 trillion won annually over the next three years starting this year.”
He assessed, “With the restructuring of LCD and large-panel operations largely complete, there is no reason to embark on large-scale capacity expansions that would provoke the top domestic competitor,” adding, “A boom follows conservative investment.”
Park projected that the financial structure would improve rapidly, driven by a decrease in depreciation expenses and improved profitability of core products. He forecast, “The debt-to-equity ratio will decline from 243% in 2025 to 217% in 2026, 188% in 2027, and 156% in 2028.”
SK Securities projected LG Display’s 2026 revenue at 25.9 trillion won and operating profit at 988.9 billion won. This represents a 91% year-over-year increase in operating profit. However, while an operating loss of 112.6 billion won is expected in the second quarter, the firm anticipates a full-scale earnings rebound starting in the second half of the year.
Increased production by North American clients was also cited as a key growth driver. Analyst Park explained, “North American clients are considering increasing smartphone production in 2027, following this year, to proactively secure a user base (Installed Base & End-user Base) for the AI era,” adding, “The company’s mobile division is also expected to reach full capacity in the second half of this year and next year.”
He further analyzed, “Following the release of entry-level laptops early this year, these clients will launch OLED laptops around the end of this year and early next year,” adding, “We are closely monitoring the possibility of increased laptop production by these clients in 2027–2028. The company stands to benefit the most domestically.”
SK Securities projected that LG Display’s revenue in 2027 will reach 27.4 trillion won, with operating profit reaching 1.5 trillion won. The operating profit margin is estimated to be around 5%.
He also emphasized the stock’s valuation appeal. Analyst Park explained, “While six major IT stocks have seen re-ratings of 108% to 1,096% compared to the end of last year, LG Display has risen by only about 30%,” adding, “The current stock price corresponds to a price-to-earnings ratio (PER) of 7.4 times based on 2027 earnings and 4.4 times based on 2028 earnings.”
He assessed, “It feels like we’re seeing LG Innotek during the COVID-19 cycle,” adding, “While its market capitalization is around 6.5 trillion won, its annual revenue reaches 25 trillion won. It’s structured such that profits increase by 250 billion won for every 1 percentage point improvement in profitability.”
He continued, “We are seeing simultaneous benefits from increased smartphone and laptop production by North American clients and improvements in the company’s financial structure,” adding, “I recommend a bottom-fishing strategy.”