[Click eStock] Securities Firms Continue to Raise Target Price for Samsung Biologics

Securities firms have continued to raise their target prices for Samsung Biologics.

On January 7, NH Investment & Securities maintained its "Buy" rating on Samsung Biologics and raised its target price to 2.2 million won in its report titled "The Quality of a Leading Stock That Will Surpass Lonza Even in 2026."

Han Seungyeon, a researcher at NH Investment & Securities, stated, "We recalculated the target price, taking into account the change in the number of shares following the relisting after the physical spin-off last November." As the reasons, she cited high growth and profitability, capacity (CAPA), and a high valuation compared to peers based on favorable supply and demand.

This year, Samsung Biologics’ revenue is estimated at 5.3825 trillion won, an 18% increase from the previous year. Operating profit is projected at 2.4095 trillion won. These figures are based on the full operation of Plant 4, a 19% utilization rate for Plant 5, and do not reflect the U.S. plant.

Researcher Han commented, "Samsung Biologics will continue to demonstrate overwhelming growth and profitability compared to global competitor Lonza in 2026," adding, "Therefore, the valuation premium remains justified." She presented three key investment points for this year: the Biosecurity Act, additional revenue from the U.S. plant, and the groundbreaking of Plant 6. She further noted, "The recently acquired U.S. plant is expected to be reflected in consolidated results starting from the second quarter of 2026, and when included, there is a possibility of a 25% annual revenue growth rate."

On the same day, Kiwoom Securities also raised its target price for Samsung Biologics to 2.1 million won. Heo Hyemin, a researcher at Kiwoom Securities, stated, "Revenue and operating profit in 2025 are expected to grow by 29% and 56% year-on-year, respectively, with an operating margin of +46%. These are results that exceed already heightened expectations." She also pointed out, "There are market questions about whether the company can continue such high growth in 2026, given its strong performance so far."

Nevertheless, she explained, "The annual operating margin in 2026 is expected to be generally similar to the 2025 level. The operating margin for the plant (60,000L) acquired from GSK is estimated at 20-30%. Since this is a smaller proportion compared to the existing plant capacity (780,000L), it is not expected to significantly undermine profitability. As Plant 5, which is ramping up, begins generating revenue in the second half of the year, this will partially offset the impact of plant maintenance costs."

Yuanta Securities also raised its target price from 1.3 million won to 2.1 million won, indicating a potential upside of 22% compared to the previous day's closing price of 1,721,000 won.

Ha Hyunsoo, a researcher at Yuanta Securities, stated, "Plant 5, which began operations in April 2025, will start to be recognized in sales from the second quarter of 2026." He added, "With the land purchase agreement for Songdo Campus 3 last year, the company secured additional space for new plants, and the announcement for the delayed groundbreaking of Plant 6 is expected soon." He further explained, "Campus 3 is planned to build research and production facilities for various modalities such as cell and gene therapies (CGT) and vaccines, in addition to existing antibody drugs, expanding from an antibody-focused portfolio to a broader range of modalities."

In addition, Researcher Ha mentioned that Samsung Biologics signed an agreement last month with GSK to acquire a biopharmaceutical manufacturing facility in Maryland, USA, and stated, "By securing a production facility in the U.S., the company will be able to respond flexibly to changes in the global pharmaceutical supply chain." He also noted, "In 2025, the company signed contracts worth 4.8 billion dollars," and added, "With the passage of the Biosecurity Act in December last year, robust order contracts are expected to continue."