[Click eStock] Samsung Electronics, Operating Profit of 60 Trillion Won This Year "Target Price Raised to 100,000 Won"

[Asia Economy Reporter Lee Seon-ae] IBK Investment & Securities announced on the 6th that it maintains a buy rating on Samsung Electronics and raises the target price to 100,000 KRW. This adjustment is due to expectations of improved earnings.

Kim Un-ho, a researcher at IBK Investment & Securities, analyzed, "The recent stock price decline fully reflects concerns about the DRAM market, and while a rebound in DRAM prices is unlikely, the decline is expected to be limited," adding, "The NAND market is expected to continue its favorable trend through the second quarter."

He continued, "Earnings improvement is expected to continue from the first quarter as the bottom, and operating profit for 2022 is projected to reach 60 trillion KRW, indicating significant potential for stock price appreciation, which is why the target price has been raised."

IBK Investment & Securities expects Samsung Electronics' sales in the first quarter of 2022 to be 75.443 trillion KRW, similar to the fourth quarter of 2021. This is a slight increase compared to previous forecasts. Sales in the semiconductor division were revised upward. Most divisions, except the IM division, are expected to see a decrease in sales compared to the fourth quarter of 2021. Samsung Electronics' operating profit for the first quarter of 2022 is expected to slightly increase to 13.839 trillion KRW compared to the previous quarter, which is higher than previous forecasts. All divisions except the IM division are expected to see a decrease in operating profit compared to the previous quarter.