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Investing.com - Morgan Stanley (NYSE:MS) upgraded Samsung SDS Co Ltd (KS:018260) from Equalweight to Overweight on Thursday, raising its price target to KRW220,000 from KRW150,000.
The upgrade comes as Morgan Stanley sees the company’s 120MW AI data center in Gumi as a "landmark project" that could transform Samsung (KS:005930) SDS from an IT service company into a leading cloud service provider in Korea.
Morgan Stanley highlighted that captive demand from Samsung affiliates is expected to utilize a significant portion of the data center’s capacity, which should enable the company to generate attractive returns.
The investment bank noted that its new price target reflects the economic potential from this data center build-out.
Morgan Stanley pointed out that Samsung SDS shares are currently trading at 17x P/E based on 2026 estimates and 10x on an ex-cash basis, which it considers attractive.
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