[Edaily Reporter PARK MIN ] On the 14th, IBK Investment & Securities stated that LG Display(034220)is facing a triple challenge—chip inflation, a sharp drop in the exchange rate, and declining global demand for IT devices—and while maintaining its “Buy” rating, it lowered the target price by 23.5% from 17,000 won to 13,000 won. Compared to the closing price of 7,560 won on the previous trading day (October 13), the stock has upside potential of 72.0%.

Kang Min-gu, an analyst at IBK Investment & Securities, stated in a report published that day, “Although the third quarter is typically the peak season for the launch of new mobile products by North American clients, we believe that pressure to lower component unit prices was more intense than in previous years due to rising memory prices (chipflation).” “Given that a 10-won fluctuation in the exchange rate typically results in a 6 to 7 billion won change in operating profit, the sharp drop of more than 100 won in the exchange rate this quarter makes a decline in operating margins inevitable,” he said.

According to IBK Investment & Securities, LG Display’s third-quarter consolidated revenue is estimated at 6.517 trillion won, a 6.3% decrease year-over-year, while operating profit is projected to fall 40.2% to 257.6 billion won, falling short of market expectations.

A slowdown in demand for IT devices due to a deteriorating external environment was also cited as a factor weighing on earnings. While the effects of years of efforts to reduce fixed costs and the transition to an OLED-centric business structure have become visible, analysts note that smartphone shipments from strategic clients in North America are performing weaker than expected. Furthermore, analysts noted that concerns are growing regarding a decline in operating profit margins and a contraction in revenue, compounded by a general slowdown in demand for non-essential IT products such as tablets and smartwatches.

However, positive factors include the company’s success in maintaining shipment volumes by improving its panel market share among clients despite the overall decline in device shipments, as well as simultaneous improvements in both revenue and profitability in the large-sized OLED business, which is centered on gaming monitors.

IBK Investment & Securities projected LG Display’s 2026 annual revenue at 24.421 trillion won and operating profit at 618 billion won. The operating profit forecast represents a downward revision of approximately 35.6% from the previous estimate of 960 billion won. The firm further projected that in 2027, the company would record annual revenue of 25.882 trillion won and operating profit of 1.205 trillion won.

Analyst Kang Min-gu explained, “We have revised our annual operating profit forecast downward from the previous 960 billion won to 617 billion won,” adding, “In line with the downward revision of the earnings forecast, we have lowered the target price to 13,000 won—a 23% decrease from the previous level—while maintaining the same target multiple as before.”