'50,000 Jeonja' Stock Market Target Price Downgrade

Samsung Electronics Q2 Earnings Expected to Be Weak
Target Price Lowered Despite Overselling Concerns

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Junho] Securities firms have collectively lowered their target prices for Samsung Electronics, the immutable blue-chip stock that has fallen to the "50,000 won electronic" level.

As of 9:05 a.m. on the 21st, Samsung Electronics was recorded at 58,900 won. After closing at 58,700 won per share the previous day, it marked the lowest point since July 28, 2020, followed by a slight rebound.

Amid the lowest level drop in two years, the securities industry evaluated this as an "oversold" phenomenon due to risk aversion. Noh Geun-chang, a researcher at Hyundai Motor Securities, said, "Currently, Samsung Electronics' price-to-book ratio (PBR) is at the low levels seen during the past financial crisis (2009) and the 2019 bottom when DRAM prices plummeted," adding, "The risk of the stock price falling further is low."

However, securities firms have collectively lowered their target prices, citing the high possibility that external economic conditions will affect second-quarter earnings. First, in the memory division, inflation has increased the likelihood of weak smartphone demand in the second half of this year, as well as deteriorating demand for laptops and home appliances. This could lead to a decline in memory semiconductor prices. Ahn Gyu-jin, a researcher at DB Financial Investment, said, "Weakness is expected in IT sets such as PCs and mobiles, and a decline in memory prices seems inevitable," lowering the target price to 87,000 won.

The MX division, which produces smartphones, is also facing difficulties. Lee Seung-woo, a researcher at Eugene Investment & Securities, said, "The MX division is expected to suffer performance damage due to sales decline from shipment decreases, parts prices, and the strong dollar," lowering the target price to 79,000 won.

Kim Young-woo, a researcher at SK Securities, said, "Regarding the foundry division, Samsung Electronics' 3nm process sluggishness is expected to delay market share recovery until the second half of next year," and adjusted the target price downward to 75,000 won.

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