LG Display Co Ltd (LPL) recently announced plans to manufacture as many as 10 million OLED TV panels in 2021, which compares with 1.7 million such panels it actually produced in 2017.
In New York, shares of LG Display closed lower for the third time in the past seven trading sessions on Wednesday. The stock went down 2.34% ($0.28) to $11.68, after touching an intraday low at $11.43, or a price level not seen since November 15th 2016 ($11.29).
“We will be able to produce 10 million, or 20 million OLED TV panels easily as consumers are willing to pay for better products. We plan to produce 2.8 million this year, and aim to reach 10 million by 2021”, Lee Sang-hoon, LG Displays Senior Vice President, said in an interview with Nikkei Asian Review.
In order for the company to achieve such an objective, LG Displays executive said that as much as KRW 20 trillion, or $18 billion, would be invested in OLED technology by the year 2020. In order to fund the investment, the company would have to maximize its cash flow and, if necessary, take affordable loans, the SVP said.
Lee also said LG Display was seeking to generate over 40 percent of its total revenue from OLED technology.
In 2017, sales of OLED TVs comprised almost 50 percent of LG Displays high-end segment, which encompasses items priced at $2 000 or higher.
According to CNN Money, the 31 analysts, offering 12-month forecasts regarding LG Display’s stock price, have a median target of $17.23, with a high estimate of $27.10 and a low estimate of $10.32. The median estimate is a 47.52% surge compared to the closing price of $11.68 on April 4th.
The same media also reported that 12 out of 31 surveyed investment analysts had rated LG Display’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 4 analysts had recommended selling the stock.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
