Samsung Electronics, Will the Stock Price Reach the 80,000 Won Range?

On the 8th, Samsung Electronics announced that its consolidated operating profit for the third quarter of this year was preliminarily estimated at 12.3 trillion won, a 58.1% increase compared to the same period last year. The photo shows the Samsung Electronics building in Seocho-gu, Seoul. Sales increased by 6.45% to 66 trillion won compared to the same period last year. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Park Jihwan] Samsung Electronics' operating profit for the third quarter of this year was tentatively estimated at 12 trillion won, leading to a rise in its stock price. The average target price for Samsung Electronics in the securities industry is in the 75,000 won range, and it is evaluated that settling in the 80,000 won range is possible due to expectations for next year's performance.

On the 8th, Samsung Electronics closed at 59,700 won, down 0.33% (200 won) from the previous trading day on the Korea Exchange. On that day, Samsung Electronics' stock price also entered the 60,000 won range during the session, the first time since the 21st of last month.

Samsung Electronics announced on the 7th that its consolidated preliminary results for the third quarter of this year recorded an operating profit of 12.3 trillion won. This significantly exceeds the market expectations, which were initially predicted to be in the low 10 trillion won range.

The securities industry analyzes that considering next year's performance, Samsung Electronics' stock price could settle in the 80,000 won range. Kim Unho, a researcher at IBK Investment & Securities, said, "Considering stable performance growth in the second half and significant performance improvement in 2021, investment is still favorable in this stock price range," adding, "Although the profit momentum will be halved due to semiconductor sluggishness in the fourth quarter, the annual operating profit will exceed 35 trillion won, and the mobile market conditions in the second half will improve."

Net purchases by institutional and foreign investors drove the stock price upward. On the 7th, institutions bought Samsung Electronics shares worth 119.8 billion won, marking the largest net purchase in about a month. Foreign investors also led the rise by net buying a total of 113.9 billion won on the 6th and 7th. According to FnGuide, the current average target price for Samsung Electronics among 24 domestic securities firms is 75,258 won.

Park Seongsun, a researcher at Cape Investment & Securities, explained, "This is due to a strong rebound in Set demand and profitability improvement from reduced marketing expenses," adding, "Although the memory market conditions in the fourth quarter are heading toward the bottom, signs of improvement are appearing, such as the resumption of purchases by server customers, so it is judged to be an active overweight expansion phase."

This content was produced with the assistance of AI translation services.