Samsung Electronics, '80,000 Electronics' Next Year?

Year-End Samsung Electronics Target Price Revised Upward
Low Point Expected to Form by Q1 Next Year

[Image source=Yonhap News]

[Asia Economy Reporter Junho Hwang] "Will Samsung Electronics' stock price exceed 80,000 KRW next year?"

This year, Samsung Electronics' stock price has not escaped the swamp of the '70,000 Electronics (annual average stock price of 79,200 KRW)'. Recently, positive forecasts have emerged in the securities industry regarding Samsung Electronics' stock price. Attention is focused on whether next year will be a hopeful year for the 5.2 million small shareholders of Samsung Electronics.

According to the financial investment industry on the 21st, Cape Securities maintained its one-year target price for Samsung Electronics (closing price on the 20th: 77,100 KRW) at 105,000 KRW. This target price follows the positive outlook, after Daishin Securities raised its target price by 20% to 120,000 KRW the previous day. The average target price from 10 securities firms analyzing Samsung Electronics this month, compiled by financial information provider FnGuide, was 100,200 KRW.

Samsung Electronics' stock price rose for four consecutive trading days from the 14th, reaching 78,000 KRW. As of 9:24 AM on the day, it was trading at 77,700 KRW, up 0.78% from the previous close. Seongsun Park, a researcher at Cape Securities, diagnosed, "External risk factors such as the resurgence of COVID-19 and parts supply shortages remain, but the worst situation has already passed, and it is difficult to expect additional negative factors."

Expectations for expanded performance next year are already being reflected. Soobin Lee, a researcher at Daishin Securities, explained, "We expect DRAM memory semiconductors to enter an upcycle next year, and foundry performance improvement is also anticipated," adding, "The target price was raised due to upward revisions of annual operating profit for next year."

However, difficult times are expected to continue until the first quarter of next year. Doyeon Choi, a research fellow at Shinhan Financial Investment, stated, "Recovery is expected from the first quarter of next year as the bottom," and added, "Due to semiconductor price declines, OLED utilization rate drops, and the TV off-season impact, quarterly operating profit (11 trillion KRW) is expected to decrease by about 27.4% compared to the previous year."