Morgan Stanley Initiates Coverage on LG Electronics India, Calls It a ‘Consensus Buy
Morgan Stanley initiates coverage on LG Electronics India with an ‘Overweight’ rating and a ₹1,864 price target, calling it a consensus buy as analysts highlight strong margins, capital efficiency and long-term earnings growth.
Morgan Stanley calls LG Electronics India a ‘consensus buy,’ projecting strong long-term growth despite short-term earnings pressure.
Shares of LG Electronics India Ltd. are set to be in the spotlight on Wednesday after global brokerage Morgan Stanley initiated coverage on the recently listed stock, assigning it an ‘Overweight’ rating along with a price target of ₹1,864 — signaling a potential 15% upside from Tuesday’s close.
According to the brokerage, LG Electronics India stands out in the highly competitive consumer durables market, supported by industry-leading margins, robust capital efficiency, and strong execution across product categories.
Growth Drivers Identified
Morgan Stanley expects LG’s revenues and margins to strengthen in the coming years due to:
Expansion of new manufacturing capacity
Rising export contributions
Continued growth in the B2B business
The brokerage anticipates a 9% year-on-year dip in FY26 earnings, primarily due to a slowdown in the air-conditioner segment. However, it projects a strong 16% earnings CAGR from FY26 to FY28 as demand normalizes.
Consensus Among Analysts
Morgan Stanley values LG Electronics India at a Price-to-Earnings ratio of 50 based on FY28 estimates (September 2027 earnings). Notably, all 12 analysts tracking the stock currently hold a ‘Buy’ rating, making it a rare consensus buy in the consumer durables space.
On Tuesday, shares of LG Electronics India closed 0.06% lower at ₹1,622, but remain up 42% from their issue price of ₹1,140 per share.
