Foreign Securities Firms Downgrade Samsung Electronics Target Price

[Asia Economy Reporter Junho Hwang] Credit Suisse has lowered its target price for Samsung Electronics for the first time in over 10 months. This appears to be an adjustment due to the worsening memory market conditions and the recent decline in stock price.

According to the financial investment industry on the 1st, Credit Suisse lowered Samsung Electronics' target price from 126,000 KRW, set in January, to 115,000 KRW on the 28th.

The securities firm expects memory semiconductor prices to decline over the next two quarters.

By sector, it was assessed that while the mobile DRAM segment is showing visible signs of recovery, the ongoing parts shortage continues to impact manufacturing.

In particular, for PC DRAM, the average selling price (ASP) could drop by about 10% compared to last October. This is a significant decline compared to the mobile segment, which is maintaining prices similar to the previous quarter, and the server segment, which has fallen by about 2-5%.

Accordingly, the overall ASP for memory semiconductors is expected to fall by about 5% in the fourth quarter of this year, continuing the downward trend into the first quarter of next year before rebounding in the second quarter.

Additionally, risks to the stock price include whether smartphone margins can be sustained amid fierce competition such as with the iPhone 12, and the possibility of early success in China's entry into 3D NAND flash.

Credit Suisse analyst Han Geon stated, "Due to proactive shareholder return policies, Samsung Electronics' investment opinion remains a Buy (Outperform)."

Meanwhile, as of 11:16 AM on the same day, Samsung Electronics' stock price was 70,300 KRW, up 0.72% compared to the previous day.

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