Many stocks have been testing new highs in 2020, and one of the most notable is LG Display Co. Ltd. (LPL). Currently, LPL is trading at $5.39 and the avg recommendation for the stock is Moderate Sell. while the current analyst price target stands at $3.25.
To add more color to this target, the company’s high over the last year is $7.82 and the low is $3.63. Over the last 52 weeks, LPL is down -31.07% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, LPL reported a profit of $222.52 million. LG Display Co. Ltd. also saw revenues increase to $3.78 billion. In addition, LPL has free cash flow of -$674.63 million as of 03-2020 The company’s EBITDA came in at $504.42 million which compares well with its peers.
About LG Display Co. Ltd.
If readers are unfamiliar, LG Display Co., Ltd. manufactures and sells thin-film transistor liquid crystal display (TFT-LCD) and organic light emitting diode (OLED) technology-based display panels in South Korea, China, rest of Asia, Poland, other European countries, and the United States. The company’s TFT-LCD and OLED technology-based display panels are primarily used in televisions, notebook computers, desktop monitors, tablet computers, and mobile devices. It also provides display panels for industrial and other applications, including entertainment systems, automotive displays, portable navigation devices, and medical diagnostic equipment. The company was formerly known as LG.Philips LCD Co., Ltd. and changed its name to LG Display Co., Ltd. in March 2008. LG Display Co., Ltd. was founded in 1985 and is headquartered in Seoul, South Korea.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. LPL has a short ratio of 2.58 and outstanding shares of 687.10M.
LPL has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.46 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -3.25. LG Display Co. Ltd. LPL also noted assets of $28.71 billion at the end of the last quarter. Investors should also keep an eye on sector updates as LPL has historically followed its peers on positive news.
All told, LG Display Co. Ltd. LPL has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LPL represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
LG Display Co. Ltd. LPL is now commanding a market cap of 3.70B and a float of 444.10M. LPL is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of LPL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in LPL, either long or short, and we have not been compensated for this article.