Analysts' View: Samsung Electronics Surpasses 100,000 Won to 120,000 Won "Taking a Short Break Before Moving Up Again"

Samsung Electronics' Sales Expected to Reach Record High of 261.0632 Trillion Won This Year
Performance Market to Begin After Recent Short-Term Adjustment... Target Price Upgrades Flood In

[Asia Economy Reporter Lee Seon-ae] Samsung Electronics, the emperor stock of South Korea that led the bullish market while approaching the 100,000 KRW mark last month, has recently fallen to the low 80,000 KRW range, increasing investors' anxiety. Despite investors' concerns that the stock price might have declined, analysts are competing to raise Samsung Electronics' valuation, maintaining unwavering confidence. Continuous growth and improved profit margins are the basis for the upward valuation.

According to the financial investment industry on the 12th, major securities firms have issued investment opinions that Samsung Electronics' stock price can easily surpass 100,000 KRW and reach up to 120,000 KRW. They believe that a proper analysis of the business divisions warrants a revaluation of the stock price.

Yuanta Securities issued a buy recommendation during corrections, expecting the target price of 107,000 KRW to be exceeded once the earnings season begins. Hyundai Motor Securities also forecasted a target price of 110,000 KRW. Mirae Asset Daewoo maintained a target price of 113,000 KRW. Shinhan Financial Investment projected that 120,000 KRW is also achievable.

Choi Do-yeon, a researcher at Shinhan Financial Investment, emphasized, "The operating profit forecast for next year is continuously expanding, so it should be seen as an upward cycle," adding, "Samsung Electronics' valuation is measured by the price-to-book ratio (PBR), which has already exceeded twice the historical peak." This means it has already entered a revaluation phase. He further explained, "The recent sluggish stock price is part of a transitional period where the rise driven by expectations is shifting to an earnings-driven market," and forecasted, "It can sufficiently reach the target price of 120,000 KRW." The start of the earnings-driven market is expected in the second quarter.

Eo Gyu-jin, a researcher at DS Financial Investment who suggested a target price of 110,000 KRW, stated, "Samsung Electronics has recently reached a valuation it has never seen before, as the favorable memory market outlook is combined with liquidity strength, and there is a possibility of short-term price corrections. However, since the earnings improvement due to rising memory prices and business expansion will begin in earnest this year and continue through 2023 in the mid-to-long term, there is no need to worry about Samsung Electronics," he emphasized.

According to FnGuide, Samsung Electronics' sales are expected to reach a record high of 261.0632 trillion KRW this year. Next year, it is projected to increase further to 287.2104 trillion KRW. In 2018, sales were 243.7714 trillion KRW.

Meanwhile, on the 10th, Samsung Electronics' stock price closed at 81,600 KRW, down 1.33% from the previous trading day. It has fallen about 15% compared to the intraday high of 96,800 KRW on the 11th of last month.

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