On the 17th, Kiwoom Securities projected that LIG Defense & Aerospace stands to benefit significantly from rising global air defense missile demand, assigning an investment rating of 'Buy' and a target price of 135,000 won.

In a report, Kiwoom Securities forecast that LIG Defense & Aerospace's second-quarter operating profit will reach 107.9 billion won, in line with market expectations. In particular, the firm noted that as countries worldwide strengthen their air defense capabilities, the excellence of K-air defense systems is being repeatedly proven, and opportunities for overseas orders are expanding.

The brokerage identified the push by Middle Eastern countries such as Qatar and Kuwait, as well as Southeast Asian nations including Indonesia and Malaysia, to introduce the 'Cheongung-II' system as a key focal point. It predicted that future contract signings would directly lead to an increased order backlog and improved earnings.

The company's push into the European market was also evaluated as a major growth driver. LIG Defense & Aerospace is pursuing the establishment of a joint venture (JV) with German defense company Rheinmetall and is reviewing the establishment of a local production and supply system for medium- and long-range air defense systems. Kiwoom Securities projected that this would significantly expand the company's influence in the European market.

Kiwoom Securities emphasized, "This is a time to pay attention to the potential for order expansion driven by increasing global air defense missile demand," adding, "The strategy to enter the European market beyond the Middle East and Southeast Asia is also positive."

Meanwhile, the presented target price of 135,000 won reflects an additional upside potential of approximately 34.7% based on the previous day's closing price. The market expects that widening global geopolitical uncertainty and increasing defense budgets across countries will solidly support the medium- to long-term growth momentum of domestic defense companies.