Samsung Electronics stock price target raised by UBS to KRW128,000

UBS has raised its price target for Samsung Electronics (KS:005930) to KRW128,000 from KRW118,000, maintaining a Buy rating and indicating a 15% upside potential. This upgrade is driven by increased forecasts for DDR contract pricing and an extended DRAM upcycle into Q1 2027, resulting in UBS's operating profit forecasts for 2026 and 2027 being significantly above consensus. The firm expects Samsung shares to sustain positive momentum despite ongoing High Bandwidth Memory (HBM) execution uncertainty.

Analysis

UBS has upgraded its price target for Samsung Electronics (KS:005930) to KRW128,000 from KRW118,000, reiterating a Buy rating and implying a 15% upside potential. This revision is primarily driven by increased forecasts for DDR contract pricing and an anticipated extension of the DRAM upcycle into Q1 2027. The analyst firm's updated operating profit forecasts for 2026 and 2027 are now 24% and 15% above consensus, respectively, following Samsung's recent financial results.

The positive outlook from UBS suggests sustained momentum for Samsung shares, despite acknowledging ongoing uncertainty surrounding High Bandwidth Memory (HBM) execution. The extension of the DRAM upcycle is a significant tailwind for the company's core memory business, contributing to the strongly positive sentiment and bullish tone surrounding the stock.

This substantial upward revision in profit forecasts by UBS, significantly exceeding consensus, indicates a strong belief in Samsung's fundamental performance and market positioning. The analyst upgrade, coupled with the extended DRAM cycle, provides a robust case for continued investor interest, with a notable market impact expected.

Key Decisions for Investors

• Consider Samsung Electronics (KS:005930) for potential upside given UBS's raised price target and maintained Buy rating, reflecting an anticipated 15% return.
• Monitor DDR contract pricing trends and the duration of the DRAM upcycle, as these are key drivers underpinning UBS's significantly revised profit forecasts for 2026 and 2027.
• Evaluate the impact of High Bandwidth Memory (HBM) execution on Samsung's competitive position, as this remains a noted uncertainty despite the otherwise positive outlook.