[Edaily Reporter kyoungeun kim ] On the 1st, SANGSANGINVESTMENT&SECURITIES significantly raised its target price for SamsungElectronics(005930)from 250,000 won to 580,000 won, while maintaining its “Buy” investment rating. Analysts say the target price hike reflects the deepening supply-demand imbalance in AI-oriented memory and the structural extension of the price-rise cycle.

Jeong Min-kyu, an analyst at SANGSANGINVESTMENT&SECURITIES, stated in a report released today, “Second-quarter DRAM and NAND prices have exceeded market expectations, expanding the profitability of the DS division to unprecedented levels,” adding, “The recently announced large-scale long-term investments—including the establishment of new hubs outside the Seoul metropolitan area—reinforce the long-term visibility of the company’s leadership in the memory sector.”
Based on the closing price that day, SamsungElectronics(005930) ’s stock price stood at 334,000 won, representing an upside potential of 73.7% relative to the target price set by SANGSANGINVESTMENT&SECURITIES.
SANGSANGININVESTMENT&SECURITIES projected SamsungElectronics(005930)’s second-quarter revenue and operating profit at 178.3 trillion won (up 139.1% year-over-year) and 83.9 trillion won (up 1,693.8%), respectively. However, these figures are slightly below the consensus operating profit estimate of 85.7 trillion won.
Regarding the shortfall relative to the consensus, Analyst Jeong explained, “This is due to the retroactive reflection of provisions for first-half performance bonuses; excluding this, normal operating profit is estimated to exceed 100 trillion won.”
Analyst Jeong predicted that the momentum of price increases would continue into the second half of the year. His analysis suggests that third-quarter revenue and operating profit are expected to improve further, reaching 207.9 trillion won and 110.7 trillion won, respectively.
He emphasized, “While rising memory prices are placing a cost burden on set manufacturers, demand from data centers remains robust, and large-scale purchases are expected to continue,” adding, “In particular, the expanding share of long-term supply agreements (LTAs) enhances price and volume visibility, serving as a factor that supports earnings on the downside.”
Accordingly, SANGSANGINVESTMENT&SECURITIES projected that SamsungElectronics would post its best-ever annual results, with revenue of 738.4 trillion won (up 121.3% year-over-year) and operating profit of 372.9 trillion won (up 755.1%).