This file photo taken June 3, 2021, shows the corporate logo of Samsung Group at its office building in Seoul. (Yonhap)
SEOUL, June 7 (Korea Bizwire) — Securities firms are lowering their forecasts for Samsung Electronics Co.’s share price despite the company’s optimistic projections.
The average target price proposed by brokerage houses for the giant chipmaker last Thursday was 93,100 won, down by more than 9 percent over the past 12 months, according to the data compiled by market tracker FnGuide.
In contrast, the market consensus for this year’s operating profit was 63.7 trillion won as of Thursday.
The consensus has been on the rise since six months ago (55 trillion), three months ago (58.7 trillion) and one month ago (63 trillion).
This year’s consensus on revenue, too, has risen from six months ago (300 trillion won), three months ago (312.9 trillion won) and one month ago (325 trillion won) to reach the current 325.7 trillion won.
“Higher interest rates mean a higher discount for future values, and devaluation is only normal,” said Lee Seung-woo, an analyst at Eugene Investment & Securities Co. “Others are dealing with the same problem as well.”
Despite the optimistic consensus, other forecasts that Samsung will underperform in the latter part of the year also worked as a devaluating factor.
H. M. Kang (hmkang@koreabizwire.com)
