[Click eStock] "Samsung Electronics Q4 Earnings Expected to Decline... Target Price Lowered"

IBK Investment & Securities forecasted on the 18th that Samsung Electronics' fourth-quarter earnings are expected to be weak. However, they anticipated operating profit to increase starting from the first quarter of 2025. They maintained a 'Buy' investment rating and lowered the target price to 82,000 KRW.

Researcher Kim Unho of IBK Investment & Securities stated, "We expect fourth-quarter 2024 revenue to decrease by 3.4% quarter-on-quarter to 76.39 trillion KRW, and operating profit to decline by 19.0% to 7.43 trillion KRW."

Researcher Kim explained, "The operating environment for Samsung Electronics in the fourth quarter of 2024 was generally unfavorable, and we believe that the weak performance has been largely reflected in the stock price."

Researcher Kim projected that operating profit will increase from the first quarter of 2025. He said, "We expect an improvement in operating profit in 2025 due to a base effect from one-time costs in the DS division, and Samsung Electronics' role in the AI market will gradually improve."

Meanwhile, previously Hanwha Investment & Securities and Daol Investment & Securities also lowered their target prices by 18% and 17%, respectively, based on Samsung Electronics' weak fourth-quarter performance and downward revision of first-quarter 2025 earnings outlook.