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LIGNEX1 office building (photo = LIGNEX1) |
[Alpha Biz= Reporter Kim Sangjin] On the 19th, KB Securities raised LIG Nex1's target price from 200,000 KRW to 245,000 KRW. Despite recent stock price increases, the revised target price indicates an 18.6% upside potential (19.8% when including dividend yield) compared to the closing price on the 19th. Consequently, KB upgraded its investment rating from 'Hold' (neutral) to 'Buy.'
KB Securities highlighted a recent report from Defense Arabic stating that the Iraqi government is expected to sign a contract for the acquisition of the Cheongung II system, with a potential deal worth $2.56 billion. If finalized, Iraq will become the fourth country to operate Cheongung II, joining South Korea, the UAE, and Saudi Arabia.
The report also noted that Cheongung II could establish itself as a leading mid-range air defense system in the Western world, alongside the Patriot (U.S.), NASAMS (Norway/U.S.), and David’s Sling (Israel/U.S.). The system is expected to join South Korea's K9, K2, Cheonmu, and FA-50 as a top-selling K-defense product.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
