Update shared on 15 Nov 2025
Fair value Increased 9.22%Analysts have raised their fair value target for Samsung Electronics from ₩116,541.94 to ₩127,289.97, citing improved expectations for revenue growth and profit margins.
Analyst Commentary
Recent analyst commentary on Samsung Electronics reflects a mix of optimism about the company's future prospects and caution regarding operational risks and market dynamics. The analysis below highlights both the bullish and bearish viewpoints influencing the updated valuation.
Bullish Takeaways- Bullish analysts point to improving revenue growth projections, suggesting Samsung's underlying business momentum is gaining strength.
- There is optimism regarding the company's efforts to stabilize and expand profit margins, which is seen as a positive driver for near-term earnings potential.
- The potential for operational recovery is seen as a catalyst for a rebound in the company's share price, particularly in light of past challenges.
- Some analysts believe Samsung could benefit from a more favorable product mix or emerging market demand. This further supports their upward valuation adjustments.
- Bearish analysts caution that historical operational issues remain a risk to Samsung's ability to execute on growth strategies and maintain profitability.
- Concerns persist around macroeconomic factors, particularly potential weakness in key markets. This could put downward pressure on demand through the next year.
- Some experts note that valuation may now reflect much of the anticipated operational improvement, leaving less room for upside if macro or execution challenges materialize.
- The risk/reward profile is considered balanced by some, who believe uncertainty around external factors limits conviction in aggressive upside scenarios.
What's in the News
- Samsung raised prices on certain memory chips by up to 60% as a result of a global shortage connected to increased AI data center construction (Reuters reports).
- The company is in advanced discussions with Barclays to launch a consumer credit card in the US and is also exploring high-yield savings, prepaid, and buy-now pay-later products (Wall Street Journal says).
- Erex and Samsung plan to establish a joint venture for power storage units in Japan to strengthen the renewable energy sector (Nikkei reports).
- Tesla will purchase more than $2.1 billion worth of energy storage system batteries from Samsung SDI over three years (Korea Economic Daily reports).
- Tesla's new AI5 chip will be manufactured by both Samsung in Texas and TSMC in Arizona for use in vehicles and data centers (CNBC reports).
Valuation Changes
- Consensus Analyst Price Target has increased from ₩116,541.94 to ₩127,289.97, reflecting higher expectations for Samsung Electronics' fair value.
- Discount Rate has risen slightly from 8.19% to 8.32%, indicating a marginally higher required return or perceived risk.
- Revenue Growth assumptions have been raised from 3.06% to 3.28%, suggesting improved projections for the company's top-line performance.
- Net Profit Margin expectations have edged up from 14.35% to 14.77%, highlighting optimism about maintaining or improving profitability.
- Future P/E ratio has increased from 18.68x to 19.76x, which implies a higher valuation multiple assigned to expected earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.