DS Investment Raises Samsung Biologics Target Price to 2.1 Million Won, Keeps Buy Rating

 
DS Investment & Securities on Wednesday maintained its “buy” rating on Samsung Biologics and raised its target price to 2.1 million won from 1.3 million won, citing steady growth after first-quarter results broadly matched market expectations.
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Analyst Kim Min-jung said Samsung Biologics posted 2026 first-quarter revenue of about 1.2571 trillion won, up 25.8% from a year earlier, and operating profit of about 580.8 billion won, up 35.1%. Operating margin was 46.2%. The results were in line with prior market forecasts of 1.2797 trillion won in revenue and 590.2 billion won in operating profit.
 
Kim said plants 1 through 4 were running at full capacity and previously deferred revenue was recognized, supporting the quarter’s performance. She added that the 180,000-liter Plant 5 is expected to begin contributing to revenue in the second half of this year, with structural operating-profit growth anticipated from 2027.
 
The purchase price for GSK’s U.S. plant was finalized at $353 million — $280 million for the facility and $73 million for inventory and spare parts — and revenue from the plant is expected to be reflected starting in the second quarter. The acquisition is expected to be consolidated into results and could be a key driver for upward earnings revisions, Kim said.
 
On a separate basis, Kim projected Samsung Biologics’ full-year 2026 revenue at 5.3843 trillion won and operating profit at 2.6772 trillion won, up 18.2% and 28.2%, respectively, from the previous year.
 
DS Investment said the company’s medium- to long-term growth outlook remains intact. Samsung Biologics recently applied to the Incheon Free Economic Zone Authority for a permit to build Plant 6, aiming to break ground within the year and complete construction in 2027. It also plans to accelerate expansion of domestic production facilities following completion of the U.S. plant acquisition and easing uncertainty over tariffs.
 
Kim said the U.S. plant has capacity of about 60,000 liters, with orders already secured for about 50% of that capacity. She said additional orders could leave room for higher revenue estimates. Kim added that while the stock has been weak in the short term due to labor-management disputes, concerns about production disruptions are overdone and core processes are expected to remain stable.