Citi raises Samsung Electronics target price to 460,000 KRW, 60% higher than the latest closing price

Glonghui, May 12｜Boosted by the positive outlook in the industry, Citi has significantly raised its target price for Samsung Electronics from 300,000 KRW to 460,000 KRW. The latest closing price of Samsung Electronics is around 280,000 KRW. Earlier this month, considering potential losses from a possible labor union strike at Samsung Electronics, Citi had lowered its target price from 320,000 KRW to 300,000 KRW. Less than ten days later, driven by a sharp increase in memory chip prices, Citi again significantly raised the target price.
Citi analyst Peter Lee stated: “We originally estimated that strike-related provisions could drag performance by about 10%. Even factoring in this element, we still believe the memory industry has further upside potential.” He also predicted: “Even if the strike happens, it will only be a short-term risk for individual companies; on the contrary, it may exacerbate the global shortage of memory chips, which from a pricing perspective would benefit the three major memory giants: Samsung Electronics, SK Hynix, and Micron.”