Robust smartphone sales a white knight for LG Electronics

LG Electronics is expected to see a steady recovery in its performance on improving profits from smartphones, a report said yesterday.

Bank of America Merrill Lynch said in the report that it retains a “buy” rating on LG Electronics, saying the company’s recovery is making progress despite an unfavorable market environment.

Earlier in the second quarter, the electronics maker posted a 46.6 percent on-year surge in earnings, but it failed to meet market expectations due to its sluggish mobile business.

“LG Electronics’ smartphone market share has been improving gradually, albeit at a slower degree, driven by the launch of premium models with high specifications,” said David Min, an analyst at Bank of America.