LG Chem Gets 520,000-Won Target as U.S. Data Center Battery Demand Builds

Korea Investment & Securities has reiterated its bullish stance on LG Chem, publishing a preview of the chemical maker's second-quarter 2026 results on July 9 that keeps a buy rating and a target price of 520,000 won for the stock, which trades in Seoul under code 051910.

The brokerage's central argument is that demand for battery energy storage systems, or BESS, tied to U.S. data centers is set to climb. Analyst Lee Chung-jae wrote that the trend should become clearer in the second half of 2026 as power-hungry computing facilities look to secure reliable electricity supply, a dynamic that plays to the strengths of LG Chem's advanced materials and battery businesses.

For the April-to-June quarter, the firm projected revenue of about 13.5 trillion won and operating profit of roughly 302 billion won. The 520,000-won target is unchanged from the level Korea Investment & Securities set on May 4, and it represents a substantial premium to where the shares were trading, implying meaningful upside from the previous close.

The figure also stands out against the wider market. The average 12-month target among brokerages covering LG Chem sits near 441,000 won, meaning Korea Investment & Securities is among the most optimistic houses on the stock, roughly on par with a 530,000-won call from a rival firm. The consensus target has itself edged higher over the past six months, reflecting a gradually more constructive view across analysts.

The upgrade in tone marks a clear shift from a year earlier, when the same brokerage carried a 380,000-won target in July 2025 before lifting it in steps to the current level. Energy storage has emerged as a key theme for battery and materials suppliers as artificial intelligence data centers drive electricity consumption higher.

As with any single research note, the projection reflects one brokerage's assumptions and is not a guarantee of future performance. Investors weighing LG Chem shares face the usual risks tied to chemical cycles, battery pricing and the pace at which data center storage orders actually materialize.