LG Household shares plunge after weak Q3 earnings, target price cuts

(LG Group)

LG Household & Health Care Ltd. saw its stock price plummet by more than 5 percent on Wednesday morning after underwhelming third-quarter results led several brokerage firms to downgrade its ratings and target prices.

Shares of LG Household & Health Care were trading at 331,500 won ($239) as of 10:43 a.m., down 5.29 percent from the previous day.

Earlier in the session, the stock dropped as much as 5.71 percent to 330,000 won.

The decline came after the company announced on Tuesday its third-quarter earnings. Its operating profit stood at 106.1 billion won, down 17 percent from the same period a year ago and significantly below the market consensus of 142.3 billion won.

Sales came in at 1.7 trillion won in the third quarter.

In response to the disappointing performance, Shinhan Securities Co. and Hana Securities Co. downgraded their ratings on the company.

Shinhan Securities adjusted its rating from “buy” to “short-term buy,” while Hana Securities changed its outlook from “buy” to “neutral.”

Shinhan Securities also reduced its target stock price from 440,000 won to 380,000 won and Hana Securities cut its forecast from 500,000 won to 390,000 won.

Other brokerages also revised their target prices downward.

NH Investment & Securities Co. slashed its target from 500,000 won to 300,000 won, Kiwoom Securities Co. adjusted its estimate from 470,000 won to 450,000 won, and Sangsangin Securities Co. lowered its target from 530,000 won to 500,000 won.