As the KOSPI continues its steep ascent, breaking the 8,900 level for the first time, a growing number of stocks have surpassed brokerage target prices. The stock that exceeded its target price by the widest margin was LG Electronics (066570.KS), reflecting expectations tied to Nvidia CEO Jensen Huang's visit to Korea.
According to financial information provider FnGuide on Tuesday, among 231 KOSPI-listed companies for which three or more brokerages issued target prices over the past three months, 16 stocks closed above their target prices as of November 2. This represents about 7% of the total.
LG Electronics topped the list. As of the November 2 close, LG Electronics shares stood at 392,500 won, showing a divergence rate of -57.52% from the average brokerage target price of 166,750 won. The stock divergence rate represents the ratio of the actual share price to the target price; typically, a large negative divergence rate indicates that a stock is undervalued relative to the company's growth potential.
The move is interpreted as reflecting heightened expectations for cooperation between the two companies, following reports that Nvidia founder and CEO Jensen Huang would visit Korea and meet with LG Group Chairman Kwang-mo Koo. LG Electronics shares surged about 74% from 225,500 won to 392,500 won between October 29, when the news broke, and November 1.
Hyundai AutoEver (307950.KS) also significantly exceeded its target price. As of November 2, Hyundai AutoEver shares closed at 898,000 won, showing a divergence rate of -30.77% from the average brokerage target price of 622,667 won. Hyundai AutoEver has drawn investor attention as a top beneficiary of the robotics theme.
LG CNS (064400.KS) likewise surpassed its target price by a wide margin. The company's November 2 closing price of 135,700 won marked a divergence rate of -29.83% from its target price of 95,222 won. Other stocks that significantly exceeded their target prices included SK Networks (-27.18%), Samsung SDS (-25.39%), and Samsung Life Insurance (-24.65%).
Notably, four of the top 10 stocks — LG Electronics, LG CNS, LG HelloVision, and LG Innotek — were LG Group affiliates. Expectations of cooperation with Nvidia appear to have spread across the group, lifting share prices of its affiliates.
Meanwhile, many stocks still trade well below their target prices. Among KOSPI-listed companies, Contentree JoongAng showed the widest divergence from its target price as of November 2. Contentree JoongAng's November 2 closing price of 4,740 won showed a divergence rate of 127.85% from its target price of 10,800 won. Other stocks with high divergence rates included Daehan Shipbuilding (125.73%), HD Hyundai Marine Engine (99.64%), and Kakao Pay (95.82%).
"Since gains have been concentrated in a few large-cap stocks, sector diversification to prepare for a pullback is needed rather than simply chasing leading stocks," said Hwang Ji-woo, an analyst at SK Securities. "We suggest reflecting semiconductor leadership through SK hynix, while also positioning AI power infrastructure and shipbuilding to ease thematic concentration."
