SEOUL, December 10 (AJP) - Samsung Electronics' stock price target has been lowered by a brokerage firm, citing weaker-than-expected performance in the company's semiconductor division for 2025.
Kiwoom Securities now forecasts a target price of 73,000 won ($56) for Samsung, down from its previous estimate of 75,000 won ($57). Kiwoom predicts that Samsung's operating profit for 2025 will reach 39.5 trillion won ($30.3 billion), falling short of the market consensus of 45.4 trillion won ($34.8 billion). The device solutions division is expected to generate 19.2 trillion won ($14.7 billion) in operating profit.
"DRAM will underperform expectations through year-end and early next year due to delayed mass production of HBM3e for NVIDIA, low-price DDR4 sales by China's CXMT, and deteriorating supply-demand balance for commodity DRAM," said analyst Park Yu-ak at Kiwoom Securities. He added that potential U.S. sanctions on China could further hinder Samsung's HBM business targeting the Chinese market.
The analyst also noted that NAND prices are declining more rapidly than anticipated due to weak consumer device demand and intensifying competition among suppliers. The foundry business is expected to incur significant operating losses in the fourth quarter as utilization rates continue to decline.
Despite the downward revision, Kiwoom maintained its "buy" rating on Samsung's stock, citing its historically low valuation and limited downside risk at current levels due to ongoing share buybacks.
Copyright ⓒ Aju Press All rights reserved.