Samsung Electronics price target raised to KRW85,000 by UBS on memory pricing

Published 22/09/2025, 12:48
Samsung Electronics price target raised to KRW85,000 by UBS on memory pricing

Investing.com - UBS raised its price target on Samsung Electronics Co Ltd. (KS:005930) (OTC:SSNLF) to KRW85,000 from KRW75,000 while maintaining a Neutral rating on the stock.

The price target increase reflects UBS’s updated forecast for memory chip pricing, with the firm now expecting DRAM contract pricing to increase 5% quarter-over-quarter in Q4 2025, with undersupply conditions likely extending until Q4 2026, one quarter longer than previously anticipated.

UBS also raised its NAND flash contract average selling price assumptions to 7% quarter-over-quarter growth in Q4 2025, up from its previous estimate of 5%, with the upcycle expected to continue until Q3 2026.

These improved memory pricing forecasts led UBS to increase its operating profit forecast for Samsung’s 2026 fiscal year by 17%, putting the firm’s estimate 32% above current market consensus.

UBS noted that customers are negotiating long-term agreements beyond 2026, indicating an increasingly tight supply situation that should support Samsung shares in the near term, though at 1.28 times next-twelve-months book value for a 10.9% long-term return on equity estimate, the firm sees a balanced risk-reward ratio beyond the immediate future.

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