Although Samsung Electronics has announced its highest-ever second-quarter earnings, securities firms are showing mixed outlooks, with some raising and others lowering their target prices for the company's stock.
According to financial information provider Yonhap Infomax on July 8, Samsung Electronics recorded a preliminary operating profit of 89.4 trillion won for the second quarter, a 1,810% increase year-on-year, with revenue reaching 171 trillion won, up 129%.
This performance exceeded market expectations by 6.2%. Analysts suggest that when accounting for the approximately 17 to 20 trillion won in performance-based bonuses reflected in the first half of the year, the result is effectively an earnings surprise in the range of 107 to 110 trillion won.
Despite the record-breaking performance, the target prices set by the 18 securities firms that released reports following the earnings announcement have diverged.
This marks a shift from the trend seen immediately after the first quarter, when firms were consistently raising their target prices.
KB Securities raised its target price from 550,000 won to 600,000 won, and IBK Securities increased its target to 460,000 won, citing supply shortages caused by expanding demand for AI memory and the stock's current undervalued status.
Conversely, Kiwoom Securities lowered its target price from 430,000 won to 390,000 won, citing a potential slowdown in earnings per share growth in the second half of the year due to weakening demand following memory price hikes and intensifying competition with China.
While 15 other securities firms maintained their existing target prices, many, including NH Investment & Securities and Hyundai Motor Securities, have raised their annual operating profit forecasts for Samsung Electronics.
Views among foreign investment banks were also divided; Nomura maintained a target price of 670,000 won with a positive assessment, while Morgan Stanley pointed to a slowdown in semiconductor growth momentum.
Meanwhile, all 18 securities firms maintained a "buy" rating for Samsung Electronics, citing the favorable conditions in the memory market.
(Photo courtesy of Samsung Electronics, Yonhap News)