Consecutive Negative Outlooks... Samsung Electronics Plummets to '50,000 Won' During Trading [Featured Stock]

52-Week Low Recorded

Samsung Electronics fell below 60,000 won during trading, marking a 52-week low.

Seoul Samsung Electronics Seocho Tower. Photo by Yongjun Cho jun21@

As of 9:20 a.m. on the 2nd, Samsung Electronics was trading at 60,600 won, down 900 won (1.46%) from the previous close. During the session, the stock dropped to 59,900 won, breaking its 52-week low.

It is interpreted that the stock price decline was driven by a series of negative forecasts from securities firms. On the same day, Shinhan Investment Corp. reported increasing concerns about Samsung Electronics' semiconductor division and lowered its target price by 13.6% to 95,000 won. Kim Hyung-tae, a researcher at Shinhan Investment Corp., explained, "Concerns about the DS (semiconductor) division are growing due to weaker-than-expected smartphone demand, a slowdown in legacy memory demand, an expanded non-memory deficit compared to the previous quarter, and a delayed entry into the high-bandwidth memory (HBM) market compared to competitors. Additionally, exchange rate effects and one-time costs are damaging profitability, leading us to lower our third-quarter earnings outlook and revise down the target price." Furthermore, the foreign securities firm Macquarie downgraded Samsung Electronics' investment opinion from 'Buy' to 'Neutral' in a report released at the end of last month and sharply lowered the target price from 125,000 won to 64,000 won.