On Thursday, JPMorgan initiated coverage on LIG Nex1 Co Ltd (079550:KS) stock, a South Korean defense company, with an Overweight rating and a December 2025 price target of KRW250,000.00. The firm justified the optimistic outlook by citing the company's advanced product offerings and competitive edge in the global defense market.
LIG Nex1, known for its extensive missile product line-up, is considered by JPMorgan to be at a premium compared to its peers, such as Hanwha Aerospace and Hyundai (OTC:HYMTF) Rotem.
This is due to LIG Nex1's specifications that rival top-tier global firms and its status as a pure defense name. Despite the company's conservative stance on export opportunities, JPMorgan anticipates a significant increase in LIG Nex1's customer base in the coming years.
The potential for LIG Nex1 to export its Poniard missile to the United States was highlighted as a particularly positive development. If successful, this would not only be the first Korean missile export to the U.S. but also a testament to LIG Nex1's product competitiveness on a global scale.
JPMorgan's coverage note also reflects a strong financial forecast for LIG Nex1, with expected sales and operating profit growth of 23% and 37%, respectively, from 2023 to 2026. This projection is supported by the company's reported backlog of KRW19 trillion as of 2023, an increase from KRW12 trillion in 2022.
The firm further indicated that upcoming orders within the next 12 months could act as key catalysts for LIG Nex1's share price, reinforcing the positive rating and price target set for the defense company.
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