[Click eStock] "Samsung Electronics Q4 Earnings Expected to Fall Short... Target Price Down"
2025 Sales Profit Forecast Revised Downward
Daol Investment & Securities forecasted on the 17th that Samsung Electronics' fourth-quarter earnings will fall short of consensus. Furthermore, it revised downward the operating profit outlook for 2025. Accordingly, it maintained a 'Buy' investment rating but lowered the target price to 77,000 KRW.
Go Young-min, a researcher at Daol Investment & Securities, stated, "Fourth-quarter revenue is expected to decrease by 3% quarter-on-quarter to 76.5 trillion KRW, and operating profit is projected to decline by 10% to 8.2 trillion KRW, falling short of the consensus (OP 9.5 trillion KRW)."
Researcher Go explained, "The short-term contribution of high-bandwidth memory (HBM) to earnings remains low, and this period is marked by significant price declines due to weak general demand. Additionally, cost recognition in the foundry segment is still ongoing." However, he anticipated that after reflecting certain costs during the fourth quarter, the deficit will clearly shrink in 2025.
Daol Investment & Securities lowered Samsung Electronics' 2025 operating profit forecast to 38.7 trillion KRW (+13%) compared to the previous estimate. This revision was influenced by downward adjustments to the annual average selling price (ASP) assumptions for DRAM and NAND.
Researcher Go analyzed, "Overall earnings momentum is weak, linked to sluggish set demand in mobile and display sectors. Going forward, the recovery resilience across all business segments will strongly depend on whether the ASP of general products rises, influenced by effects such as on-device artificial intelligence (AI) in the second half of next year."
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He added, "Therefore, a meaningful stock price rebound is expected to be possible when signals of economic recovery are confirmed, expectations for industry recovery are formed, and the competitiveness of individual high-value-added products (HBM3E/HBM4, QLC-based high-capacity eSSD) is verified."
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