Samsung Electronics stock upgraded to Buy by UBS on memory market outlook

Published 16/10/2025, 08:22
Samsung Electronics stock upgraded to Buy by UBS on memory market outlook

Investing.com - UBS upgraded Samsung Electronics Co Ltd. (KRX:005930) (OTC:SSNLF) from Neutral to Buy and raised its price target to KRW112,000 from KRW93,000 on Thursday.

The upgrade comes as UBS believes the memory industry is entering "acute shortages" that will extend into 2026. With approximately 89% of Samsung’s estimated 2026 memory revenues coming from DDR and NAND technologies, the company’s Memory division—projected to contribute about 83% of group operating profit in 2026—is positioned to benefit from rising conventional memory pricing.

UBS also noted that losses in Samsung’s Foundry and LSI segments decreased significantly in the third quarter of 2025, forecasting these losses will decline by Won3.8 trillion year-over-year in 2026.

The firm highlighted Samsung’s smartphone business continues to perform well, with projected sales of 231 million units in 2025, representing a 3% year-over-year increase. This performance, combined with strong average selling prices, is expected to help Samsung’s MX division generate Won13.2 trillion in operating profit in 2025 and Won12.7 trillion in 2026.

At 1.36 times next-twelve-months book value, UBS believes Samsung stock currently discounts a 2026-2030 return on equity of 11.1%, below UBS’s estimate of 13.3%, while trading at 9.1 times the firm’s through-cycle 2026-2030 price-to-earnings ratio.

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