LG Electronics gets 400,000-won price target as physical AI pivot draws foreign broker upgrades

By Jung Yoon-hee, The Herald Business

LG Electronics draws growing market attention as it moves to formally reposition itself as a physical AI company, with investors betting that its accumulated research and development capabilities will help it stand out in AI and robotics. That optimism has prompted at least one foreign brokerage to set a price target of 400,000 won ($263) on the stock.

Citi raised its price target for LG Electronics to 400,000 won on June 9 — a 135 percent increase from its previous target of 170,000 won.

In a research note, Citi said LG Electronics is shifting its business growth focus from home appliances to physical AI, and predicted the company would establish itself as a comprehensive robotics solutions provider by diversifying its robot portfolio across both residential and industrial segments. The brokerage added that LG would effectively capture physical AI demand by leveraging its leading R&D capabilities in AI and robotics.

Citi also said it expects LG Electronics to expand its competitiveness in the robotics market by applying motor technology built up over years in the home appliance business, and to generate synergies with Bear Robotics, its commercial service robot subsidiary.

The brokerage particularly highlighted LG's partnerships with Nvidia in robotics, AI data centers and autonomous driving as a positive factor accelerating its physical AI transition.

Nvidia CEO Jensen Huang, visiting South Korea, met LG Group Chairman Koo Kwang-mo at LG Twin Towers on June 8 to forge a medium-to-long-term cooperation agreement covering physical AI, AI infrastructure and mobility. The two companies said they would combine Nvidia's AI platform with LG's capabilities in home appliances, robotics, mobility and AI infrastructure to build a next-generation physical AI ecosystem spanning AI model development, robot training and operation, and digital twin construction.

Bank of America also raised its price target for LG Electronics to 350,000 won late last month. BofA said it expects LG Electronics to continue generating long-term growth opportunities through close collaboration with major US technology companies, including Microsoft, Google, Amazon, Meta, Nvidia and Tesla.

The back-to-back upgrades from foreign brokerages have turned attention to how domestic securities firms will respond.

LG Electronics' share price has already surpassed every domestic brokerage's price target. Hana Securities had set the highest domestic target at 230,000 won on May 14. The stock was trading at 234,750 won as of 9:31 a.m. Wednesday and had surged as high as 392,500 won at the close on June 2.

"LG Electronics' share price appears to be at an important inflection point," one securities industry official said. "The stock has surged sharply on recent enthusiasm for physical AI, but domestic brokerages' price targets are still stuck in the 160,000-to-170,000-won range. We expect to see a wave of target price revisions that better reflect market expectations."