[Stock in Focus] "Now an ESS Company" Samsung SDI Rallies Over 5% on Upgraded Target Prices from Securities Firms

On October 29, Samsung SDI is showing a rally of over 5% in the domestic stock market, buoyed by a series of upward revisions to its target price by securities firms.

As of 10:10 a.m. on this day, Samsung SDI's stock price was trading at 329,000 won per share, up 5.45% from the previous session.

This surge is attributed to a wave of reports and target price hikes from securities firms, driven by expectations for growth in the energy storage system (ESS) segment.

NH Investment & Securities raised its target price for Samsung SDI to 410,000 won, stating, "Considering the growth potential of ESS and new capacity expansion announcements, ESS's profit contribution is expected to surpass that of EVs." Researcher Joo Minwoo commented, "Due to the sluggish performance of EVs, the earnings outlook for 2026 still appears to require further downward revision. However, we expect consensus estimates for 2027, when ESS will make a significant contribution, to be revised upward."

KB Securities also raised its target price from 240,000 won to 400,000 won, stating that ESS will make a significant contribution to Samsung SDI's overall performance improvement in the future. Lee Changmin, a researcher at KB Securities, explained, "We have factored in the surge in demand driven by artificial intelligence (AI), the Chinese export permit system, the expansion of ESS sales, and the effects of the Advanced Manufacturing Production Credit (AMPC) into our earnings projections. As a result, we have raised our average operating margin estimate for 2026 to 2030 from 2.7% to 4.1%." He added, "Samsung SDI is preparing an all-out effort in the ESS sector, so the benefits are expected to be significant."

Shinhan Investment & Securities raised its target price from 312,000 won to 350,000 won, while SK Securities increased its target from 250,000 won to 400,000 won. Lee Jinmyung, a researcher at Shinhan Investment & Securities, stated, "ESS will become a new breakthrough," estimating, "Operating profit from ESS in 2026 will reach 819.9 billion won, a 620% increase."

On the same day, Kim Hyunsoo, a researcher at Hana Securities, said, "Reflecting ESS growth, we are raising our earnings estimates and target P/E (the upper multiple during the battery bubble, 57x), and increasing our target price to 268,000 won," while maintaining a neutral investment opinion.