The stock price of the secondary battery material specialist L&F is weak at the beginning of trading on the 9th. The global investment bank Goldman Sachs downgraded its investment opinion to 'sell,' which is interpreted as a deterioration in investor sentiment.
As of 9:48 a.m. on the same day, L&F is trading at 50,100 won, down 6,700 won (11.80%) from the previous trading day.
The day before, Goldman Sachs presented its investment opinion on L&F as a sell, lowering the target stock price from the previous 80,000 won to 40,000 won. This is about 30% lower than L&F's closing price of 56,800 won on the 5th.
Goldman Sachs pointed out L&F's financial soundness. They projected that L&F's liability ratio would reach 376% in 2026, and the interest coverage ratio would be only 0.3. The interest coverage ratio is the value obtained by dividing operating profit by interest expenses, and a ratio below 1 means the profit for the year is insufficient to cover the interest.
They also identified that last year, LG Energy Solution accounted for over 80% of sales, which is considered a core risk factor. However, they noted that if a supply shortage occurs among competitors or if the won strengthens, there is a possibility that L&F's profitability or stock price could rebound.