[Featured Stock] Samsung Electro-Mechanics Weakens on Lowered Sales Forecast

Samsung Electro-Mechanics is showing weakness from the early trading session. It is interpreted that investor sentiment has weakened due to a report presenting conservative assumptions regarding sales forecasts.

As of 9:16 AM, Samsung Electro-Mechanics is trading at 118,500 KRW, down 1.33% from the previous day.

On this day, KB Securities maintained a 'Buy' rating on Samsung Electro-Mechanics but lowered the target price by 10% to 190,000 KRW.

Lee Chang-min, a researcher at KB Securities, stated, "We have revised down the compound annual growth rate (CAGR) of operating profit for 2023E?2027E from 22% to 16%, assuming a conservative sales outlook for applications such as PCs and smartphones, where demand continues to be sluggish."

The researcher analyzed, "IT-related shipments fell short of expectations, and the sharp decline in the exchange rate from August to September (KRW/USD: 1,371 KRW at the end of July → 1,320 KRW at the end of September, currently 1,386 KRW) also negatively impacted third-quarter earnings."