KB Securities has designated Samsung Electronics as its top pick in the semiconductor sector. This is based on forecasts that significant improvement in earnings is expected from the second half of this year. The target price remains at 90,000 won, with a rating of 'buy.'
On the 7th, KB Securities raised its third-quarter operating profit forecast for Samsung Electronics to 8.8 trillion won. It predicts that the trend of improvement in earnings will continue with an operating profit of 9.2 trillion won in the fourth quarter.
Kang Da-hyun, a researcher at KB Securities, noted, "A turnaround in earnings is expected in the second half," adding, "Concerns about high-bandwidth memory (HBM) and foundry earnings have shifted to expectations, with only the time left for earnings recovery."
In fact, in early the third quarter, Samsung Electronics completed the supply of HBM4 samples based on 1c nanometer (nm) technology to all major tech companies, including NVIDIA, AMD, Broadcom, Google, and Amazon.
Kang also forecasted an improvement in Samsung Electronics' smartphone performance. He stated, "Sales of the Galaxy Z Fold 7 and Flip 7 are expected to increase by 15% compared to the previous models."