April 26, 2024

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[THE INVESTOR] Local and global investment firms forecast that tech giant Samsung Electronics would continue to be on an upward trend in the coming weeks thanks to the improved stakeholder policies and business performance of the tech firm. 

The average target price of Samsung shares, set by 25 local stock investment firms, stood at 1,992,174 won (US$1,656.60) on Dec. 1, but the stock traders recently increased the target price to 2,079,565 won, citing the better-than-expected sales performance in the October-December period.

“The operating profit will likely come in at 8.5 trillion won, up 39 percent from the same period last year,” said Kim Dong-won, an analyst from Hyundai Securities.

The estimated operating profit is the highest quarterly operating income since the third quarter of 2013 when the profit stood at 10.4 trillion won.

Global investment firms have also forecast that the stock would be on an upswing, topping the 2-million-won mark.

Credit Suisse and JP Morgan have set the target price at 2.4 million won and 2.2 million won, respectively, while Nomura Securities has forecast it will rise up to 2.5 million won -- the highest forecast.

Riding momentum this week, Samsung shares reached an all-time high of 1,830,000 won on Dec. 21.

“Increased dividends for shareholders this year, which will reach around 4 trillion won, and Samsung’s plan to spend 50 percent of cash reserves for shareholder returns this year and next year have served as positive factors for the shares,” said Lee Soon-hak, an analyst from Hanhwa Investment & Securities.

By Kim Young-won (wone0102@heraldcorp.com)