Goldman Sachs: Raises Samsung Electronics Target Price to KRW 490,000, Expects Memory Demand to Significantly Outpace Supply

Odaily News, Goldman Sachs published a research report stating that Samsung Electronics' second-quarter operating profit met expectations. The firm raised its 2026-2028 earnings per share forecasts by approximately 2%, and lifted its 12-month target price from KRW 480,000 to KRW 490,000 ($355). The bank expects memory demand to significantly outpace supply, with the gap widening in 2027 and supply remaining tight in 2028. Goldman Sachs noted that the company's long-term agreements with major data center customers will provide better earnings visibility and downside protection.

Additionally, the company aims to become a leader in the AI memory market, with HBM4 expected to account for over 60% of HBM revenue in the second half of 2026. The firm also anticipates significant upside potential for shareholder returns. The stock currently trades at a 2027 estimated price-to-earnings ratio of 3.1 times and a price-to-book ratio of 1.2 times, with shareholder return approaching 50%. (Jin Shi)