LG Display shares fall for a second straight session on Monday, display maker appoints new Chief Executive Officer as operating loss widens

LG Display Co Ltd said on Monday that Jeong Ho-young, the current Chief Operation Officer and Chief Finance Officer at LG Chem, had been appointed as its next Chief Executive Officer, after current CEO Han Sang-beom offered to resign amid increasing losses.

LG Display shares closed lower for a second consecutive trading session in New York on Monday. The stock edged down 0.31% ($0.02) to $6.41, after touching an intraday low at $6.31, or a price level not seen since September 11th ($6.14).

Shares of LG Display Co Ltd have retreated 21.73% so far this year, following a 40.48% drop in 2018.

LG Display Co reported an increase in its operating loss to 369 billion won* (or $311.892 million) during the second fiscal quarter from 228 billion won (or $192.714 million) in the same period a year ago due to lower prices of its key product – 50-inch Liquid Crystal Displays (LCD).

“The global supply and demand balance in the display industry is still off as government-backed Chinese display makers are pouring out panels, leading to drop the display prices,” Park Sung-soon, an analyst at Cape Investment & Securities, was quoted as saying by Reuters.

Still, LG Display shareholders have to approve the appointment of a new Chief Executive Officer at the upcoming meeting in March 2020.

*1 US Dollar equals 1,183.10 South Korean Won

Analyst stock price forecast and recommendation

According to CNN Money, the 27 analysts, offering 12-month forecasts regarding LG Display Co’s stock price, have a median target of $7.51, with a high estimate of $11.24 and a low estimate of $4.45. The median estimate represents a 17.20% upside compared to the closing price of $6.41 on September 16th.

The same media also reported that at least 12 out of 28 surveyed investment analysts had rated LG Display Co’s stock as “Hold”, while 7 – as “Buy”. On the other hand, 4 analysts had recommended selling the stock.