Hanwha Investment & Securities on the 13th judged that Samsung Electronics' stock price is likely to rebound after hitting the bottom in the second quarter (April to June). It maintained its investment opinion of 'buy' and raised the target price from the previous 73,000 won to 79,000 won. The closing price of Samsung Electronics on the previous trading day was 59,500 won.
Researcher Kim Kwang-jin at Hanwha Investment & Securities noted, "Considering the earnings momentum that will improve in the second half, the additional stock buyback card, and the value gap with competitors, the target price is achievable."
Hanwha Investment & Securities cited the potential benefits from supply constraints of conventional DRAM as a basis for improved performance in the second half.
Researcher Kim said, "Currently, the conventional DRAM market is facing severe supply constraints due to capacity limits and D4 issues in both D5 and D4 production. Therefore, Samsung Electronics, which relatively has flexibility in DRAM production, is likely to benefit as prices are expected to remain strong in the second half."
Moreover, the performance at HBM3E 12-layer is also expected, according to researcher Kim.
Researcher Kim explained, "If Samsung Electronics adopts an aggressive pricing policy compared to its competitors, it could become an effective sales strategy in conjunction with NVIDIA's need for vendor diversification for HBM. Vendor entry in the second half and securing meaningful market share next year are expected."