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A006400: Solid Electrolyte Partnership Will Drive Long Term Upside

A006400: Lowered Discount Rate Likely Will Not Offset Battery Litigation Risks

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A006400
AnalystConsensusTarget
Not Invested
Published 09 Nov 2024

Update shared on 19 Dec 2025

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1Y
12.7%
7D
-9.3%

Analysts have nudged their price target on Samsung SDI slightly higher to ₩322,161.80. They cite modestly improved long term profit margin assumptions and a marginally higher discount rate that still supports a favorable valuation backdrop.

What's in the News

  • Samsung SDI entered a strategic collaboration with Solid Power and BMW to develop and validate all solid state battery cells for a future demonstration vehicle, aiming to advance commercialization of higher energy density and safer ASSB technology (Key Developments).
  • Under the collaboration, Solid Power will supply sulfide based solid electrolyte that Samsung SDI will integrate into separators and catholytes to build cells, which will then be evaluated by Samsung SDI and BMW against agreed performance requirements (Key Developments).
  • The Minnesota Court of Appeals ruled that Minnesota courts have personal jurisdiction over Samsung SDI for injuries linked to its 18650 lithium ion batteries used in electronic cigarettes, allowing a significant product liability case to proceed to trial (Key Developments).
  • Jurisdictional discovery showed Samsung SDI directly shipped and sold more than 2.9 million 18650 batteries to Minnesota manufacturers, with contracts permitting resale for personal use, supporting the court's finding that the company purposefully conducted business in the state (Key Developments).

Valuation Changes

  • Fair Value Estimate is unchanged at approximately ₩322,162, indicating no revision to the intrinsic value target.
  • The Discount Rate has risen slightly from 9.83 percent to about 9.93 percent, reflecting a marginally higher required return on equity.
  • Revenue Growth is effectively unchanged at around 21.12 percent, suggesting stable long term topline expectations.
  • The Net Profit Margin has risen slightly from about 9.21 percent to roughly 9.23 percent, incorporating modestly stronger profitability assumptions.
  • The Future P/E has fallen slightly from about 19.03x to roughly 18.63x, implying a marginally lower multiple applied to forward earnings.

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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.