LG Display: Morgan Stanley Sees Possible Double

LG Display (LPL) shares are up sharply today following a highly bullish note this morning from Morgan Stanley’s Keon Han , who assumed coverage of the LCD panel maker with an Overweight rating and a target price of 37,000 Korean won, or about 119% above yesterday’s closing level in trading in Seoul. Han says that he agrees the LCD downturn will continue in 2009, and he expects LPL’s earnings to fall for a few more quarters. But he says that indiscriminate selling of Korean stocks has created some values for long-term investors - including LG Display. “Having analyzed LG Display’s balance sheet and operations thoroughly, we conclude that it will be one of the winners emerging stronger out of this downturn,” he writes, adding that the stock “should be bought now.” He cautions that the company will post operating losses going into the first half, its first losses since Q1 2007 “and a marked contrast to its long-term trend of sustaining ... (link)