[Edaily Reporter Kim Kyung-eun ] On the 22nd, iM Securities raised its target price for LS(006260)to 570,000 won—a 128% increase from the previous target—citing expectations of expanded power infrastructure contracts and benefits from the lifting of dual-listing regulations. The firm maintained its “Buy” rating.

Lee Sang-heon, an analyst at iM Securities, stated in a report released that day, “In an environment where power demand is surging due to the spread of artificial intelligence (AI) and the expansion of data centers, LS is expected to benefit as it possesses a power infrastructure value chain that spans from copper production to transmission, transformation, and distribution.”

In particular, the growth in orders at its core subsidiary, LS Cable, is notable. LS Cable’s order backlog on a standalone basis rose from 2.8 trillion won in 2022 to 4.4 trillion won in 2023, 5.9 trillion won in 2024, and 6.9 trillion won in 2025, before reaching 7.5 trillion won in the first quarter of this year.

The analyst explained, “LS Cable’s earnings improvement will accelerate based on expanded orders for underground and subsea ultra-high-voltage projects and bus ducts (a power distribution system that places conductors inside metal ducts for high-capacity power transmission),” adding, “Increased demand for bus ducts—a key component in power supply for AI data centers—will lead to improved profitability.”

The recent surge in copper prices was also cited as a factor contributing to the improved performance. Copper prices rose to around $13,000 per metric ton as increased demand driven by the expansion of AI data centers and renewable energy infrastructure coincided with supply disruptions at mines.

The analyst noted, “Major subsidiaries such as LS Cable and LS I&D operate under a structure where product prices are linked to copper prices,” and analyzed, “It is highly likely that the rise in copper prices will lead to improved earnings going forward.”

Regulations on dual listings currently being pushed by the government were also cited as a catalyst for stock price growth. While LS has been pursuing initial public offerings (IPOs) for companies such as Essex Solutions, LS MnM, LS e-Link, and LS Eco Advanced Materials, plans are expected to change due to the introduction of dual listing regulations.

The analyst noted, “Holding companies have historically been valued at a discount due to concerns over conflicts of interest arising from the dual listings of their subsidiaries,” adding, “If a system prohibiting dual listings in principle is introduced, the holding company discount factor will be mitigated, making a valuation re-rating possible.”

The analyst also viewed the increased pressure to retire treasury shares resulting from the third amendment to the Commercial Act as a positive development. “It is expected that a significant portion of the company’s 11.1% treasury shares will inevitably be retired,” the analyst added, “and such a retirement will lay the groundwork for a rise in valuation.”