Samsung Electronics: Investment Rating and Target Price Maintained Despite Sharp Drop

[Financial News] Mirae Asset Securities stated on the 5th that it is maintaining its target price for Samsung Electronics despite the steep share-price decline, reiterating a "Buy" rating with a target price of 275,000 won.
Kim Young-gun, an analyst at Mirae Asset Securities, noted, "Following the USA airstrike on the Islamic Republic of Iran on the 28th of last month, Samsung Electronics' share price plunged 20.5% in just three trading days." He added, "The drop exceeded that of the Korea Composite Stock Price Index (KOSPI), which fell 18.4% over the same period, and was about five times larger than the decline in the Philadelphia Semiconductor Index (SOX), which slipped 4.1%, indicating an excessive correction."
Regarding this, he commented, "Given that geopolitical risks have not yet damaged the company's fundamentals, we view the current situation as a typical panic-sell phase."
Kim went on to say, "Although uncertainty remains elevated, the current share price level reflects a sharply discounted valuation." He forecast, "Memory prices remain stable, so there is limited room for earnings downgrades, and the tight supply-demand conditions in the memory market are likely to persist over the longer term."

dschoi@fnnews.com Reporter Choi Doo-seon Reporter