"Samsung Electronics Is Still on Sale... It Could Rise to 610,000 Won" — Brokerage Houses Raise Price Targets Again on HBM Boom

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[Financial News] Brokerage houses are once again raising their expectations for Samsung Electronics and SK hynix. Analysts say the strong semiconductor cycle could last longer than expected as expanded long-term supply deals for High Bandwidth Memory (HBM) and rising prices reinforce the outlook.
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On the 1st, SK Securities raised its target prices for Samsung Electronics and SK hynix to 610,000 won and 4 million won, respectively. The firm said the structural growth in the HBM market is continuing, and that expanded Long-Term Agreements (LTA) will improve earnings visibility going forward.
On that day, Samsung Electronics closed at 349,000 won, while SK hynix finished at 2,363,000 won.
Han Dong-hee, an analyst at SK Securities, said, "Securing demand visibility through long-term supply contracts and the sharp increase in HBM prices in 2027 are making the earnings outlook even brighter."
He said 3- to 5-year long-term supply contracts could help secure stable demand. By locking in sales volumes in advance, companies can raise the price floor and reduce earnings volatility tied to market swings, he explained.
The outlook for higher HBM prices was also cited as a reason for the target price increases. Han said, "Next year's HBM prices are expected to rise by at least 50% from this year," adding that "this will further strengthen the trend of improvement in the memory market."
Accordingly, SK Securities raised its operating profit forecasts for Samsung Electronics and SK hynix this year to 378 trillion won and 272 trillion won, respectively, up 12% and 4% from previous estimates. It also lifted next year's operating profit forecasts to 570 trillion won for Samsung Electronics and 423 trillion won for SK hynix, up 10% and 13%, respectively.
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The possibility of expanding shareholder return policies was also seen as a factor boosting investment appeal. Han said, "Strengthened shareholder return policies at both companies are expected to begin in earnest in the second half of this year."
He noted that SK hynix is expected to surpass 100 trillion won in net cash in the third quarter of this year. For Samsung Electronics, he said expectations could rise for a new policy announcement as its existing three-year shareholder return plan ends this year.
Although share prices have recently risen, the two companies are still seen as undervalued. Han said Samsung Electronics' 12-month forward price-to-earnings ratio stands at 5.8 times, while SK hynix's is 6.2 times. He added that compared with Micron's 10.2 times, the two stocks are trading at discounts of 43% and 39%, respectively.
hsg@fnnews.com Han Seung-gon Reporter