[Infostock Daily= Reporter An Hoe Hyun] Hyundai Motor Securities raised its six-month target stock price by 13.8%(11,000 won) from 80,000 won to 91,000 won and maintained its investment opinion 'Buy' for Samsung Electronics on the 29th, saying the Buy&Hold strategy is valid considering the semiconductor cycle and shareholder return policy.
Analysts say the company has been far exceeding market returns recently due to expectations for a shareholder return policy, the possibility of a faster-than-expected rebound in DRAM prices and favorable foundry demand.
"In a situation where it is not easy for operating profit next year to exceed the level of 2018 when the memory semiconductor was booming, the stock price is hitting a new high, and the burden of further hikes is increasing," the company analyzed, adding, "However, the Buy&Hold strategy is more effective than hasty profit-taking."
"Fourth-quarter sales and operating profit are expected to be 60.5 trillion won and 9 trillion won, respectively, below the previous estimates of 8% and 13.5% due to a decrease in shipments due to strengthened inventory management of smartphones and a strong won." the company predicted, adding, "Sales and operating profit in the second quarter will rise 8.6% and 21.7% QoQ to 65.7 trillion won and 11 trillion won thanks to the early launch of the Galaxy S21 and the rise in DRAM prices."
Despite the upward revision of its first-quarter earnings forecast, the annual operating profit changed to 51 trillion won, 0.4% higher than previous estimates, due to a change in the won-dollar exchange rate forecast.
Reporter An Hoe Hyun ahh@infostock.co.kr
