Analysts have raised Samsung Electronics' fair value price target from approximately ₩92,645 to ₩105,207. They cite the company's recent large contract wins and a sustained upturn in the DRAM market as key drivers behind the upgrade.
Analyst Commentary
Bullish Takeaways- Recent large-scale contract wins are seen as pivotal for driving increased utilization and improved margins across Samsung's foundry operations, which previously faced challenges.
- Samsung is well-positioned to benefit from a robust and sustainable upturn in the DRAM market, supporting higher growth projections through at least 2026.
- Bullish analysts believe that major contract wins can serve as key references, enhancing Samsung's credibility and likely resulting in new, larger-scale partnerships in the future.
- Upgraded fair value price targets reflect greater confidence in Samsung’s ability to execute on growth opportunities and capitalize on favorable market trends.
- Despite positive developments, there remains execution risk in ramping up utilization rates, particularly within the foundry division.
- Sustaining momentum from major contract wins will require consistent performance and ongoing technological leadership in a highly competitive market.
- Analysts remain watchful of the cyclical nature of the semiconductor industry, which could impact long-term valuation if demand shifts unexpectedly.
What's in the News
- Federal officials found no evidence of tariff cheating among appliance makers, including Samsung, after investigating undervaluing claims raised by Whirlpool. (WSJ)
- Samsung plans to implement employee bonuses tied to share price performance over the next three years. Workers will have the option to receive payouts in either shares or cash. (Bloomberg)
- Samsung and SK Hynix signed a deal to supply semiconductors for OpenAI’s $500 million Stargate data center project. Samsung’s leadership team also met with OpenAI’s CEO in Seoul. (Financial Times)
- The Trump administration is considering tariffs on foreign consumer electronics, including Samsung devices, based on the value of chip content in each product. (Reuters)
- Samsung settled a wireless patent lawsuit after a $279 million trial loss earlier in 2025, reaching an agreement with Headwater Research. (Reuters)
Valuation Changes
- Consensus Analyst Price Target has risen from ₩92,645 to ₩105,207, reflecting a more optimistic outlook for Samsung’s value.
- Discount Rate has fallen slightly, moving from 8.23% to 8.19%, indicating a modest decrease in perceived risk.
- Revenue Growth projections have increased from 4.75% to 5.70%, signaling higher expected sales expansion.
- Net Profit Margin has improved from 11.22% to 12.19%, suggesting greater expected profitability.
- Future P/E has risen slightly from 18.82x to 19.12x, which points to modestly stronger market confidence in Samsung’s earnings potential.
Disclaimer
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