Samsung Electronics stock price target raised by Goldman Sachs to KRW96,000

Goldman Sachs raised its price target for Samsung Electronics (005930) to KRW96,000 from KRW84,000, maintaining a Buy rating, driven by an increased Q3 2025 operating profit estimate of KRW10.2 trillion and higher 2025-2027 EPS forecasts (8-24%). This upgrade reflects expectations for improved conventional memory volume and pricing, reduced foundry losses, and significant growth in its High Bandwidth Memory (HBM) business, positioning Samsung for a multi-quarter memory pricing upcycle from its current mid-cycle valuation.

Analysis

Goldman Sachs has upgraded its price target for Samsung Electronics to KRW96,000 from KRW84,000, maintaining a Buy rating on the stock. This revision is underpinned by an increased third-quarter 2025 operating profit forecast, now at KRW10.2 trillion, and a significant 8-24% lift in 2025-2027 earnings per share estimates. The positive outlook is attributed to a confluence of factors, including improved volume and pricing in the conventional memory market, shrinking operating losses in the foundry and system LSI divisions, and a more favorable USD/KRW exchange rate. Critically, Goldman Sachs anticipates increased volumes in the High Bandwidth Memory (HBM) segment, noting that any positive developments in this area could act as a potent catalyst for the share price, given current low market expectations. The stock is currently trading at a mid-cycle multiple of 1.3 times its 12-month forward price-to-book value, a valuation that Goldman Sachs suggests precedes a multi-quarter memory pricing upcycle and a significant improvement in the company's HBM business.

Key Decisions for Investors

• Investors should view the upgraded price target and earnings forecasts as a strong signal of a cyclical recovery, potentially justifying an overweight position in Samsung ahead of the anticipated multi-quarter memory upcycle.
• Monitor developments in Samsung's High Bandwidth Memory (HBM) business closely, as the analysis identifies this as a key potential catalyst where positive surprises could lead to significant share price appreciation.
• Consider that the current valuation of 1.3x forward price-to-book is viewed as a mid-cycle multiple, suggesting the stock may not fully reflect the expected earnings growth from both the memory cycle and HBM advancements.