Samsung Electronics, 7th Consecutive Day of Decline... Records New Low [Featured Stock]

Samsung Electronics continued its seven-day losing streak, hitting a 52-week intraday low.

As of 9:05 a.m. on the 11th, Samsung Electronics was trading at 65,000 won, down 1,200 won (1.81%) from the previous day. The stock fell to 66,000 won during the previous trading session, touching the 52-week intraday low recorded on October 6 last year, and on this day, it dropped further to 64,800 won, breaking the 52-week intraday low.

The decline in earnings outlook is seen as a factor behind the weak stock performance. On this day, Korea Investment & Securities forecasted Samsung Electronics' Q3 earnings to be 79.3 trillion won in sales and 10.3 trillion won in operating profit, falling short of the consensus (average securities firms' estimates) of 83.3 trillion won and 13.3 trillion won by 5% and 23%, respectively. Chaemin-sook, a researcher at Korea Investment & Securities, explained, "Operating profit is expected to fall below 10.4 trillion won recorded in Q2," adding, "As smartphone manufacturers' memory inventory has increased again to 13-14 weeks, shipments of both DRAM and NAND will decrease compared to the previous quarter, and the average selling price (ASP) increase will also be limited to single digits." Reflecting the revised earnings estimates, Korea Investment & Securities lowered Samsung Electronics' target price by 20%, from 120,000 won to 96,000 won.

Recently, securities firms have been lowering Samsung Electronics' target price one after another, reflecting the earnings slowdown. Meritz Securities cut its target from 108,000 won to 95,000 won, Hyundai Motor Securities lowered it from 110,000 won to 104,000 won, KB Securities reduced it from 130,000 won to 95,000 won, and Hanwha Investment & Securities adjusted it down from 110,000 won to 100,000 won.