[Featured Stock] Samsung Electronics Lowers Earnings Expectations... Hits New Low Again

Securities Firms Continue to Lower Target Stock Prices

Samsung Electronics announced its preliminary results for the third quarter of this year, with sales of 79 trillion won and an operating profit of 9.1 trillion won. Compared to the second quarter, sales increased by 6.66%, but operating profit decreased by 12.84%. The photo shows Samsung Electronics Seocho Building in Seocho-gu, Seoul, on the 8th. Photo by Jinhyung Kang aymsdream@

Samsung Electronics hit a new 52-week low again shortly after the market opened. As the third-quarter earnings fell short of expectations, investment sentiment is interpreted to have weakened due to lowered expectations for earnings forecasts.

At 9:24 a.m. on the 10th, Samsung Electronics was trading at 59,400 KRW, down 1.49% (900 KRW) from the previous day. On the same day, Samsung Electronics dropped to 58,900 KRW during the session, setting a new low for the day just one day after the previous low.

On this day, Lee Seung-woo, a researcher at Eugene Investment & Securities, said about Samsung Electronics, "Expectations for the speed of change have also lowered, and to overcome this distrust, a proof in numbers is ultimately needed," adding, "Due to the downward revision of earnings forecasts and expectations, the target price is lowered by 10%."

Song Myung-seop, a researcher at IM Securities, also pointed out, "Whether the largest GPU company's HBM3E 8-stack certification is passed will greatly affect not only Samsung Electronics' short-term stock price but also the full-scale growth of the company's HBM business division next year," and added, "Samsung Electronics' current stock price holds the possibility of an additional 10% decline in the worst-case scenario where the economic and industry downturn becomes certain."