The downward trend of the semiconductor market has caused the analysts based in South Korea to revise and adjust the price targets drawn earlier for Samsung Electronics shares. In addition, market observers have reduced their expectations about Samsung’s operating profitability during the third quarter of 2022 compared to the same period last year by almost 25%.
Do Hyun Woo; Analysts at NH Investment & Securities cut their price target on Samsung shares to 70,000 won from 75,000 won ($53). According to the cycle of decreasing demand for memory chips, he estimated that by the end of this year, the price of DRAM chips will drop by 9% and in 2023, we will see a 12% drop in the price of these chips.
Do Hyun-woo estimates that Samsung’s operating profit will reach more than 11.8 trillion won ($8.47 billion) in the third quarter of 2022. This figure is about 25.5% less than the estimate announced last Friday. According to analysts’ estimates last Friday, Samsung’s operating profit for the third quarter of 2022 will be 13.3 trillion won ($9.5 billion).
According to The Investor website, the price of Samsung shares has decreased by about 30% since the beginning of January until last Monday. Although the stock price of this company continues to go down; But investing in Samsung is still a priority for Korean investors, and most of them hope that the company will return to its growth path.
Samsung is not the only South Korean semiconductor manufacturer struggling with declining chip orders; Because analysts have revised their price targets for SK Hynix shares with a similar approach. Regardless, Korean investors still trust Samsung. As a result, from the beginning of January this year until last Friday, individual investors have purchased Samsung shares worth 50.5 trillion won ($36 billion); While the total value of shares sold by investors during this period was equal to 33 trillion won (23 billion dollars).