[THE INVESTOR] Samsung SDI’s earnings are advancing, said KTB Investment and Securities on Sept. 28, raising the target price to 320,000 won (US$287.87) from 290,000 won.
Its revenue in the third quarter will hike 45.4 percent on-year to 2.48 trillion won and operating profit will surge 249.8 percent to 210.4 billion won. The firms fundamentals are improving across sectors, and its stock price is likely to be rerated. In particular the small battery unit, which has been relatively undervalued, is flourishing and earnings are likely to advance further, said analyst Kim Yang-jae.
In addition to systematic earnings improvement of its own business, it will also enjoy restored profits from the stake in Samsung Display. Its earnings per share next year will spike 46 percent, estimated the analyst underlining that the company has great growth potential.
By Hwang You-mee (firstname.lastname@example.org)