LG Display Rallies on Profit-Turnaround Hopes

By Kwanwoo Jun

LG Display's shares rallied Wednesday on growing hopes for a profit turnaround next year after a news report said that it may supply organic light-emitting diode TV panels to tech giant Samsung Electronics.

Shares of the South Korean flat-screen maker rose as much as 5.9% earlier in the session before paring some gains to trade 3.2% higher at 15,690 won ($11.68) later in the afternoon, outperforming the benchmark Kospi's 0.6% gain.

The rally followed a report from Reuters on Tuesday citing unnamed sources as saying that the company could start supplying high-end OLED TV panels to Samsung as early as the second quarter of 2023. According to Reuters's sources, shipments could reach 2 million units in 2024 before expanding further.

LG Display and Samsung weren't immediately available to comment on the news report.

KB Securities said in a research note Wednesday that it expects LG Display to swing to a profit in 2024 after two straight years of losses, citing the possible supply deal with Samsung, which it thinks could start in the second half of 2023.

LG Display's shipments of OLED TV panels could increase by 38% to 10 million units globally in 2024, supported by the potential Samsung deal, KB Securities said as it maintained a buy rating and KRW20,000 target price on the stock.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

May 17, 2023 00:47 ET (04:47 GMT)

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