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LG Electronics share price gained another 1% in Thursday's session on February 19 to reach an eight-week high of ₹1,576 apiece, extending its winning run to the fifth session.

The stock remained in focus after a series of bullish calls from top brokerage firms, which highlighted the company’s strong positioning to outpace its peers in the near-to-medium term, which took attention away from the company's weak set of numbers for the December-ended quarter.

Domestic brokerage firm Axis Securities today initiated coverage on the stock with a ‘Buy’ rating and set a target price of ₹1,815 apiece, implying an upside potential of 16.3% from the stock's previous closing price.

The brokerage said the company is well-positioned for sustained profitability and growth, supported by its leading market share, brand equity, and deep distribution networks.

It expects the company to maintain its consolidation in premium ranges as well as entry-level brands, with further scope to improve market share through entry into LG Essentials (an entry-level brand), capacity enhancements, and a robust supply chain, which it anticipates should support improvement in the company’s overall profitability.

The brokerage estimates a revenue, EBITDA, and PAT CAGR of 9%, 19%, and 14%, respectively, from FY26–28E, valuing the company at 44x FY28E EPS.

This was the second major bullish call on the stock, as on Wednesday, global brokerage firm Goldman Sachs initiated coverage on the stock with a ‘Buy’ rating and sees the stock rising to ₹1,750 apiece, CNBC TV-18 reported. Mint could not independently verify this report.

The brokerage believes the company is well-positioned to outpace industry growth over the near to medium term, driven by a favourable shift in income cohorts and rising penetration in mid- and premium-segment products.

While maintaining its bullish outlook on the company, the brokerage also cautioned that rising competitive intensity and elevated commodity prices may limit margin expansion.

Prabhudas Lilladher said that even though the company’s performance in the December quarter was weak, it continued to gain market share across major categories on a YTD basis.

The brokerage has maintained its ‘Buy’ rating on the stock but lowered the target price to ₹1,808 apiece from an earlier target price of ₹1,920 apiece.

Although LG Electronics share price has shown strength lately, surging 6% so far in February, it still trades 9.35% below its listing price of ₹1,710 apiece. The stock closed the last three months in the red, losing a cumulative 12%.

The company’s shares made a blockbuster debut on Dalal Street on October 14, listing at a massive 50% premium over the issue price of ₹1,140 apiece, marking the largest mainboard issue of over ₹10,000 crore to list with a 50% premium in 2025.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities and broader financial ma...

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