iM Securities raised its target price for Samsung Electronics on the 19th to 480,000 won, while maintaining a buy recommendation. The new target implies upside of 35.6% from the current share price of 354,000 won.
The brokerage projects Samsung's operating profit for 2026 at approximately 34 trillion won — a 680% increase on the prior year — reflecting the company's revised employee compensation structure.
Second-quarter 2026 operating profit is forecast at 7.61 trillion won, with the semiconductor division (known internally as DS) alone accounting for 7.43 trillion won of that figure. The concentration stems from bonus provisions for the first and second quarters being recognised in a single lump sum during the second quarter.
iM Securities estimates Samsung's return on equity (ROE) for 2026 at 48.4%, which would surpass the previous 30-year peak of 41% recorded in 2000. Using that as its anchor, the brokerage applied a price-to-book ratio (PBR) of 4.8 times — above the 4.2 times peak seen in 2000 — to its projected 2026 book value per share of 100,000 won, arriving at the 480,000 won target.
The outlook for memory chips is expected to remain buoyant through at least 2027. iM Securities argues that while DRAM industry output growth will ease from around 25% this year to below 20% by 2027, sustained capital investment by major technology companies in data centres — channelled through rights offerings, special purpose vehicles, and joint ventures — will keep demand robust.
The brokerage did acknowledge the possibility of a near-term pullback following the stock's recent sharp rally. Nevertheless, it expressed confidence in the medium-term trajectory: "With operating conditions and earnings remaining strong, and a recovery in global liquidity growth expected to resume in the second half of the year, the medium-term uptrend remains intact," it said.