[Click eStock] "Samsung Electronics, AI Growth Momentum Expected to Expand... Target Price Up"

On the 27th, Kiwoom Securities raised the target price for Samsung Electronics from 100,000 KRW to 110,000 KRW, stating that "it is time to focus on the earnings growth story in the memory sector, which will accompany the AI inference market." The buy rating was also maintained.

[Image source=Yonhap News]

On the same day, Park Yu-ak, a researcher at Kiwoom Securities, forecasted Samsung Electronics' Q2 earnings for this year, stating, "Revenue will be 72.8 trillion KRW and operating profit will be 8.4 trillion KRW, increasing by 1% and 27% respectively compared to the previous quarter, slightly exceeding market expectations."

He added, "As the price increase rate of memory semiconductors surpasses market expectations, it will offset the profitability weakness of smartphones," and analyzed, "the memory price increase rate is exceeding expectations, and the rise in the KRW-USD exchange rate at the end of the quarter will have a favorable effect."

Researcher Park expected, "Q3 earnings will record revenue of 84.3 trillion KRW and operating profit of 12.9 trillion KRW, significantly surpassing market forecasts," and anticipated, "there will be a substantial improvement in profitability in the memory sector." He also pointed out, "With the visible mass production sales of high-bandwidth memory (HBM) 3E for Nvidia, the earnings outlook for the DRAM sector may also be revised upward."

He stated, "In the second half of this year, Samsung Electronics will mass-produce 9th generation V-NAND (vertically stacked memory) and will actively sell enterprise SSDs (eSSD) based on quad-level cell (QLC), as well as expand sales of 128GB server DIMMs (DRAM modules)," adding, "The upward momentum of the stock price, which has been relatively suppressed so far, could strengthen."