LG Electronics Shares Surge After Morgan Stanley Initiates Coverage — Check Price Target
The positive rally in LG Electronics' shares come on the back of Morgan Stanley's bullish note on the counter
Shares of LG Electronics India Ltd. are trending positive on Wednesday's session following Morgan Stanley's initiation and a subsequent note that highlights the company's excellent fundamentals.
The stock is trading at Rs 1,675, reaching intraday high of Rs 1,678. This accounts for gains of more than 3% and compares to Tuesday's closing price of Rs 1,624.
The positive rally in LG Electronics' shares comes on the back of Morgan Stanley's bullish note on the counter, with the brokerage firm initiating coverage with a 'buy' call and a target price of Rs 1,864.
Morgan Stanley described LG Electronics India as a "top-tier consumer durables franchise," highlighting the company's ability to stand out in a highly competitive market due to its dominant market share across multiple categories, including washing machines, refrigerators and air conditioners.
"LG has industry-leading margins and best-in-class capital efficiencies," Morgan Stanley noted in its latest report.
The brokerage firm highlighted that the company's future revenue and margin expansion would likely be driven by new manufacturing capacity. The company recently announced plans to invest heavily in a new facility in Andhra Pradesh, as part of its expansion.
The bullish call comes just over a month after the company’s initial public offering, one of the largest in India’s consumer sector this year.
