LG Electronics shares hit 6-year high

Shares in LG Electronics hit a six-year high on Thursday on hopes its new smartphone will help propel fourth-quarter earnings.

The stock jumped as much as 5.9% to a six-year intraday high of Won104,000 after brokerage CLSA raised its rating on the shares to overweight and lifted its price target to Won115,000 from Won74,000.

New smartphone

LG Electronics announced its newest smartphone model, the LG V30+ will be available from this weekend to customers in Qatar before rolling out sales globally. The phone won 26 awards at this year's IFA trade show in Berlin.

The stock has been an investor favourite this year, rising 96.7% since the start of January, as strong sales of home appliances offset losses at its mobile business.

The company hopes that the launch of the V30+ phone will help turn around losses at the division.

Earnings hopes

Third-quarter core earnings rose 82%, the company reported in October, and the stock has risen on speculation that further profit growth in the fourth-quarter will contribute to a stellar year for the company.

At the close of trading on the Seoul stock exchange, shares in LG Electronics were up 3.68% at Won101,500.