Despite positive outlooks from the securities industry, LG Energy Solution is showing a weak trend during trading.

In the morning session on the 18th, LG Energy Solution is trading at KRW 401,000, down KRW 15,000 from the previous trading day.

On this day, Daol Investment Securities maintained its investment opinion of 'Buy' and a target price of KRW 550,000 for LG Energy Solution. This assessment indicates significant upside potential compared to the current stock price.

Daol Investment Securities projected second-quarter revenue at KRW 6.7 trillion this year. However, operating profit is estimated to swing to a loss of KRW 18.4 billion. The analysis suggests that while profitability burdens may persist in the short term, attention should be paid to the mid- to long-term improvement trend.

In particular, the Energy Storage System (ESS) business segment is projected to turn to profit starting from the second quarter of this year. Based on this, the year-over-year revenue growth is expected to accelerate, and the company's overall profitability is also expected to surpass the break-even point (BEP) starting in the second half of the year.

Daol Investment Securities evaluated, "While valuation burdens currently exist, profitability improvements are gradually being confirmed. In this regard, investment appeal is actually increasing."

In the market, concerns over a slowdown in the electric vehicle battery industry and global demand volatility are acting as short-term burdens on the stock price. However, the expansion of the ESS market and expectations for improved earnings are seen as mid- to long-term investment points.

Meanwhile, investors are focusing on whether profitability improvements and the growth rate of the ESS business can be confirmed in practice through upcoming quarterly earnings reports.

[※ This article was written with the assistance of AI. Investment decisions are the responsibility of the investor, and the content contained in this article may change depending on market conditions.]