Samsung Electro-Mechanics shares surged in early trading on the 9th. Buying appears to be pouring in after the securities industry said the stock remains undervalued and raised its target price to 2.3 million won.
As of 9:12 a.m. that day, Samsung Electro-Mechanics was trading on the main bourse at 1,864,000 won, up 12.02% (200,000 won) from the previous session.
Earlier that morning, a report from the securities industry raised the operating profit estimates for Samsung Electro-Mechanics and lifted the target price to 2.3 million won from 1.8 million won.
Ko Ui-young of iM Securities said, "We raise our operating profit estimates for Samsung Electro-Mechanics in 2027 and 2028 by 5% and 6% to 3.3 trillion won and 4.3 trillion won, respectively," adding, "Given industry direction and Samsung Electro-Mechanics' competitiveness, there is considerable room for further upward revisions."
In particular, Samsung Electro-Mechanics was described as a representative artificial intelligence (AI) component stock that can simultaneously benefit in the multilayer ceramic capacitor (MLCC) and FC-BGA markets.