LG Display cut to Equal Weight at Morgan Stanley on limited catalyst path

Morgan Stanley downgraded LG Display to Equal Weight from Overweight with a price target of KRW 14,000, down from KRW 18,000. The analyst contends that high volatility, a wider range of potential outcomes, and a limited catalyst path make it difficult to be Overweight on LG Display shares in the medium term, even though the firm continues to have confidence in the company’s long-term opportunity and sees a positively skewed risk/reward. The firm adds however that valuation on LG Display seems reasonable, and supply-side discipline should protect against downside risks.