[Click eStock] Samsung Electronics, Stock Price Rise Support Begins 'Top Pick in Industry'

Kiwoom Securities announced on the 15th that it maintains a Buy rating and a target price of 90,000 KRW for Samsung Electronics. From this point onward, it believes that improvements in business fundamentals such as 'expansion of HBM sales and rebound in memory prices' will begin to support the rise in Samsung Electronics' stock price. Accordingly, it also maintains its top pick opinion for the sector.

Kiwoom Securities estimated Samsung Electronics' Q3 revenue and operating profit at 67.3 trillion KRW and 1.8 trillion KRW, respectively. Although these figures represent significant improvements of 12% and 167% quarter-on-quarter, it expects the fixed cost burden from memory production cuts to be greater than anticipated. Therefore, it forecasts short-term earnings to underperform market consensus.

Park Yu-ak, a researcher at Kiwoom Securities, noted, "Although Q3 earnings are weaker than expected, most of this is due to the fixed cost burden from large-scale production cuts, so the impact on short-term stock price movement will be limited."

Samsung Electronics' Q4 revenue and operating profit are projected at 67 trillion KRW and 3.4 trillion KRW, respectively. This is because a turnaround to operating profit is expected in DRAM, foundry, and LSI businesses. The expected reduction in NAND's operating loss is also likely to have a positive effect. Researcher Park stated, "Although NAND is currently recording a large operating loss, it is expected to pass the industry bottom as prices rise by 2-3% year-on-year in Q4."

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