Can Samsung ’s stock rebound this year?
Brokerage firms expect the stock price of Samsung Electronics to reach 100,000 won ($75.08) this year, according to multiple sources, Sunday. Market observers believe that the firm’s performance has entered a phase of improvement, given the rebound in the semiconductor industry and the increase in smartphone shipments.
As of Sunday, four securities firms have forecasted that the share price of Samsung Electronics will reach 100,000 won. This wave of optimistic forecasts began after Hana Securities raised their target price from 95,000 to 100,000 won, subsequently followed by Meritz Securities and SK Securities. Mirae Asset Securities projected the highest target price of 105,000 won.
As of Friday, Samsung Electronics shares traded at 72,300 won ($54.28).
Analysts attribute the upward adjustment in forecasts to several key factors: the growth in shipments of NAND flash memory, a rise in DRAM prices and an increase in smartphone shipments. These developments are expected to have a positive impact on the company’s operating profits.
“For the first quarter of this year, Samsung Electronics’ operating profit from the memory semiconductor sector is anticipated to return to profitability for the first time in six quarters, since the third quarter of 2022,” said Kim Dong-won, an analyst at KB Securities.
Expectations are also high for its performance in the High Bandwidth Memory (HBM) market. The company is set to begin shipments of its 8-layer HBM3E in the third quarter of this year. HBM, a high-value semiconductor, has experienced a surge in demand, driven by the rapid growth in AI.
Samsung Electronics has seen a lackluster stock price trend for some time due to a downturn in earnings. Last year, the company’s operating profits plummeted by roughly 84 percent year-on-year, with its flagship semiconductor division posting a loss of around 15 trillion won.
As a result, the stock price fluctuated between 50,000 and 70,000 won throughout last year. This led to a significant reduction in the number of shareholders, with 1.16 million shareholders, or 18.2 percent, departing compared to the previous year.
Yet, following the anticipation of its improved performance, individual investors have net purchased 1.9 trillion won worth of Samsung Electronics shares from Jan. 2 to March 15. According to the Korea Exchange, the stock has emerged as the top choice for net buying by individual investors.