[EQUITIES] ‘Samsung Electronics to rebound shortly’
[THE INVESTOR] Samsung Electronics shares will rebound boosted by the strong second-quarter earnings, said KB Investment and Securities on April 21, maintaining a “buy” recommendation and 2.70 million won (US$2,378) target price.
The recent drop in the stock price is only a short-term adjustment and the price, 13 times more undervalued than its global rivals, is bound to pick up, said analyst Kim Dong-won.
Its second-quarter operating profit will rise 54 percent on-year to 12.5 trillion won, beating market expectations, forecast the analyst.
The uptick in the sales of Galaxy S8 will push the IT and mobile divisions’ operating profit to 3.5 trillion won, over 1 trillion won higher than the previous quarter, said Kim. The issue regarding the reddish hue of the new model’s screen relates to its software not hardware and will only have limited effect on sales, according to the analyst.
By Hwang You-mee (firstname.lastname@example.org)