By Kwanwoo Jun


LG Electronics' shares rose early Tuesday on market expectations for a valuation boost from its expanding vehicle-component business.

Shares of the South Korean consumer electronics giant gained as much as 11% to 124,700 won ($94.12) in the morning session, outperforming the benchmark Kospi's 0.8% rise.

The stock was on course for its largest daily percentage gain in more than two years.

Hana Securities analysts Roko Kim and Minkyung Kim said in a research note that they valued the vehicle-parts segment of LG Electronics at KRW9.9 trillion, nearly doubling their earlier estimate.

The analysts were upbeat on the company's joint venture with Canadian auto-parts maker Magna International, which supplies electric-vehicle parts to all major U.S. automakers.

The vehicle-component segment of LG Electronics is forecast to post an annual average revenue growth of 20% over the next five years, they reckoned.

Hana kept a buy rating and KRW168,000 target price on the stock.


Write to Kwanwoo Jun at kwanwoo.jun@wsj.com


(END) Dow Jones Newswires

05-30-23 0108ET