Samsung Securities Co. revised down its stock price target for LG Uplus Corp. to 11,500 won ($8.8) from 15,000 won on Wednesday, with a downgrade in investment opinion, citing lack of growth momentum.

“The company initially proposed 4 percent as annual service revenue guidance but that target is highly likely to not be met considering the cumulative earnings in the first three quarters,” said Choi Min-hwa, an analyst at Samsung Securities.

Choi noted that cost increases that pulled down third-quarter earnings are a structural issue that is expected to continue in the fourth quarter and onwards.

“The growth in wire and wireless memberships continue but growth in new businesses such as media, artificial intelligence, and business-to-business is relatively weak,” Choi said.

In a regulatory filing, LG Uplus said that it posted an operating profit of 254.3 billion won in the third quarter, down 10.8 percent from the same period a year ago.

The earnings is 4 percent below the market consensus of 264.9 billion won compiled by Yonhap Infomax.

Shares of LG Uplus finished at 10,180 won on Tuesday, down 230 won from the previous session.

LG Uplus, in the meantime, announced Tuesday that it will introduce ExTem, a customized membership program, to users on the 5G prepaid plan Nugget.

It is the second package offered in Nugget, a digital mobile platform, which involves a membership program that provides free vouchers and discount codes that can be used at local hot spots.

LG Uplus recently partnered with the urban content platform Urbanplay to introduce Yeonyeon Pass, a tour package providing users with the opportunity to explore six popular locations in Yeonnam-dong in Mapo District and Yeonhui-dong in Seodaemun District, both in northern Seoul.

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