Samsung Electronics, Will It Reach 100,000 Won?...Target Price Hits Record High of 120,000 Won

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] Samsung Electronics, which ended last year at the "70,000 won electronics" level, is drawing attention this year as it may open the era of "100,000 won electronics" amid expectations of improvement in the semiconductor market. The securities industry is forecasting a target stock price of up to 120,000 won.

According to the Korea Exchange on the 2nd, Samsung Electronics closed at 78,300 won on the 30th of last month, down 0.63% from the previous trading day. This is a 3.33% decrease compared to the closing price of 81,000 won at the end of last year, resulting in a negative annual return. This underperforms the KOSPI's annual increase of 3.63% last year.

At the beginning of last year, Samsung Electronics surpassed 90,000 won for the first time ever, buoyed by expectations of a "semiconductor supercycle." At that time, the securities industry raised Samsung Electronics' target stock price to over 100,000 won one after another. However, the stock price failed to break the previous high, hovered within a range, and then declined. Due to the falling prices of its core business, memory semiconductor DRAM, the price dropped to the 60,000 won range in October.

Recently, following Micron's strong performance, semiconductor stock prices have rebounded, and the securities industry is expressing positive opinions on Samsung Electronics' stock price outlook.

In a report dated the 20th of last month, Daishin Securities raised Samsung Electronics' target stock price from 100,000 won to 120,000 won. The 120,000 won target is the highest among those presented by the securities industry currently. Researcher Lee Subin of Daishin Securities explained, "We raised the annual operating profit forecast from 52.7 trillion won to 58.5 trillion won this year," adding, "We expect DRAM memory semiconductors to enter an upcycle this year, and additionally, Samsung Foundry's performance is also anticipated."

Yuanta Securities also maintained a target stock price of 118,000 won for Samsung Electronics in a report published on the 21st of last month and recommended increasing the weighting of the memory semiconductor sector. Researcher Lee Jaeyoon of Yuanta Securities forecasted, "The downcycle caused by memory semiconductor inventory adjustments is expected to conclude during the second to third quarters of this year, coinciding with the peak season," and added, "From the first to second quarters, earnings forecasts will turn upward, driving stock price increases."

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