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[Alpha Biz=(Chicago) Reporter Paul Lee] NH Investment & Securities raised its target price for Samsung Electronics on the 5th to reflect the overall improvement in business conditions and the rise in semiconductor selling prices. The target price rose from 90,000 won to 95,000 won, and the investment opinion 'buy' was maintained.
NH Investment & Securities expects Samsung Electronics' fourth-quarter sales to reach 71.3 trillion won and operating profit to reach 4.2 trillion won, exceeding market expectations (70 trillion won, 3.6 trillion won).
"More-than-expected earnings are attributable to increased memory shipments and external growth and falling losses due to higher selling prices," said NH Investment & Securities Co. "DRAM is estimated at bit growth 26 percent, ASP 15 percent, bit growth 24 percent and ASP 14 percent in the fourth quarter of last year, and SDC will continue to have the effects of new products from North American customers in the fourth quarter, but we considered recent sluggish sales and entry into competitors."
The increase in the target price reflected the overall improvement in the industry and the rise in semiconductor prices. Researcher Ryu said, "The target price was calculated by applying PBR 1.7 times to BPS in 2024, and Samsung Electronics is currently trading at the past average level of PBR 1.4 times, so the burden of valuation is limited."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
