Business · Companies · 2 hrs ago
IBK Keeps Samsung Electro-Mechanics Target Price at 1.75 Million Won
IBK Investment & Securities expects Samsung Electro-Mechanics’ profit to rise sharply in the third quarter, helped by demand for parts used in AI servers.
It forecasts operating profit of 666.8 billion won, up 156% from a year earlier.
The expected growth is linked to higher sales of advanced components, rising prices and increased factory use, while supply shortages are supporting margins.
The analyst raised its 2027 operating-profit forecast to 4.4 trillion won, from about 3 trillion won, citing continued demand for multilayer ceramic capacitors and package substrates.
The company’s shares fell 16% in the past month, as worries about slower AI investment and higher interest rates weighed on AI-related stocks.
IBK kept its target price at 1.75 million won, despite raising its earnings forecasts, because valuations for comparable Japanese companies had fallen.
The forecasts point to further profit growth through 2028, though market concerns about AI demand remain a risk to the shares.
IBK Investment & Securities maintained its buy rating and 1.75 million won target price for Samsung Electro-Mechanics.
The brokerage forecast third-quarter operating profit of 666.8 billion won, up 156.2% from a year earlier.
It raised its 2027 operating profit forecast to 4.4 trillion won, citing demand for AI-related components and tight supply.
The report said higher prices, a richer mix of high-value products and improved factory utilization would support profitability.
Concerns about slower AI investment and lower valuations among comparison companies were cited as reasons the target price was unchanged.
- Who
- IBK Investment & Securities analyst Kim Woon-ho issued the report on Samsung Electro-Mechanics.
- What
- IBK maintained its buy rating and target price of 1.75 million won.
- When
- The report was issued on October 20, 2026.
- Where
- Samsung Electro-Mechanics is based in South Korea.
- Why
- IBK cited improving demand and profitability for AI-related components, while keeping the target price unchanged partly because of lower valuations among comparison companies.
IBK Investment & Securities
Concerns about slower AI investment
Target price
IBK Investment & Securities
IBK maintained a 1.75 million won target price, citing stronger earnings prospects.
Concerns about slower AI investment
Concerns about slower AI investment were weighing on valuations across the AI supply chain.
Future demand
IBK Investment & Securities
IBK said component supply shortages and customer-backed expansion plans supported longer-term growth.
Concerns about slower AI investment
The report described concern that AI investment and growth could slow.
Samsung Electro-Mechanics closed at 1.17 million won, according to the report.
IBK Investment & Securities maintained its buy rating and 1.75 million won target price.
- Target price
- 1.75 million won
- Rating
- Buy
- Third-quarter operating profit forecast
- 666.8 billion won
- 2027 operating profit forecast
- 4.4 trillion won
- Shares over the past month
- Down 16% as of October 19
What people are saying
Despite various signals of growth, concerns about growth are also increasing.