Hana Securities on the 17th raised its target price for Samsung Electronics to 480,000 won from 430,000 won, saying memory chip prices are rising more strongly than expected. It kept its investment rating at "Buy." The previous trading day's closing price for Samsung Electronics was 346,500 won.
Kim Rok-ho, a Hana Securities analyst, said, "We are revising up our price assumptions as the average selling price (ASP) of DRAM is expected to exceed the initial forecast," and noted, "While server and PC DRAM prices remain solid, the increase in low-power DRAM (LPDDR) prices is also coming in stronger than expected."
Hana Securities forecast Samsung Electronics' second-quarter sales this year at 179 trillion won and operating profit at 92 trillion won. It expected operating profit to increase more than 18 times from a year earlier and rise 61% from the prior quarter.
In particular, it analyzed that demand for artificial intelligence (AI) servers is driving the rise in memory prices. Despite shipment adjustments by Greater China smartphone makers, demand for LPDDR installed in AI central processing units (CPU), including Nvidia, is proving stronger than expected, it said.
Hana Securities also projected that high-bandwidth memory (HBM), following general DRAM, will contribute to earnings improvement ahead. With the shipment timing of HBM4 pushed back from the initial forecast, this year's contribution has been somewhat reduced, but it expects profitability to improve next year as the share of HBM4 expands and general DRAM prices rise.
Kim said, "General DRAM prices have risen about fourfold from the second half of last year," adding, "If HBM price negotiations take concrete shape, it will also contribute to raising the 2027 earnings outlook."
An expansion of shareholder returns was also cited as an investment point. Hana Securities estimated Samsung Electronics' 2026 free cash flow (FCF) at about 309 trillion won. It said if half of that is used for shareholder returns, the scale of dividends and share buybacks could expand significantly.
Kim said, "In 2026, share buybacks are estimated at about 66 trillion won and dividends at about 77 trillion won," explaining, "Dividends per share would be about 14,850 won, implying a dividend yield of 4.3% based on the current share price."
The recent relative underperformance of Samsung Electronics' share price compared with global memory makers is also seen as an investment opportunity.
Kim said, "For more than a month recently, Samsung Electronics' share price has underperformed other memory makers, but it is hard to find clear grounds," adding, "We believe an investment strategy that takes advantage of the current price level is needed."