Samsung Electronics Target Raised to 630,000 Won on Memory Outlook

What Samsung Electronics’ 630,000 Won Price Target Signals

For Samsung Electronics investors, the significance of this report lies less in the price-target figure than in the strength of the memory profit outlook. Infostock Daily reported on September 28, 2026, that Yuanta Securities had raised its 2027 earnings forecast for Samsung Electronics and lifted its price target to 630,000 won. Investors should begin by recognizing that these are projections for pricing and profit, not actual earnings.

ASP stands for average selling price. With no memory sales volume figures provided, the key question in assessing this analysis is how much the projected increases in DRAM and NAND ASPs will translate into profit for Samsung Electronics’ memory business. The credibility of the higher price target also depends on whether this relationship holds.

Why Memory Profit of 10.2 Trillion Won Exceeds the Entire DS Division

Yuanta Securities forecast third-quarter operating profit of 10 trillion won for Samsung Electronics’ DS division and 10.2 trillion won for its memory business. At the same time, it projected a third-quarter operating loss of 200 billion won for Samsung Electronics’ non-memory business. This suggests that non-memory losses will offset part of the profit generated by memory, with the figures highlighting the diverging trajectories of the two businesses.

Under this structure, memory pricing will determine overall profit. Yuanta Securities expects third-quarter average selling prices to rise 18% quarter on quarter for DRAM and 16% for NAND. If both pricing forecasts hold, the basis for the memory profit estimate will remain intact. If the actual increases fall short, however, both the DS division’s profit forecast and the rationale for upgrading the 2027 earnings outlook will need to be reassessed.

Expectations Embedded in the 3.5x Target P/B

Yuanta Securities analyst Baek Gil-hyun calculated the 630,000 won price target for Samsung Electronics by applying a target price-to-book ratio of 3.5x to projected 2027 book value per share. The price target therefore incorporates two distinct judgments: the earnings forecast and the valuation multiple. Even if the earnings forecast proves accurate, a change in the P/B multiple investors are willing to accept would alter how the target should be interpreted.

Focusing market attention solely on near-term memory prices would miss the report’s broader point. Baek said that even if the share price undergoes a correction amid concerns that the memory market is peaking, whether the memory cycle can continue on AI demand and expanding HBM adoption will remain a major variable in the company’s valuation. However, the report provides no specific HBM4 sales volume or revenue figures, leaving insufficient evidence to assess how much the product may contribute to earnings.

Samsung Display Profit Should Be Assessed Separately

Samsung Display’s third-quarter operating profit is forecast at 1.1 trillion won. This figure shows the scale of earnings contributed by the display division separately from Samsung Electronics’ semiconductor profit. The report also mentions Samsung Display’s Generation 8.6 IT OLED line, but the FACT_SHEET does not establish its specific impact on profitability.

Accordingly, investors assessing Samsung Electronics’ earnings should not conflate the memory pricing outlook with the Samsung Display profit forecast. The former is a central variable for the DS division, while the latter is an operating profit estimate for a separate business. Keeping the figures separate by business will make it possible to identify which forecast diverged from actual earnings.

Actual Figures and Forecasts Investors Must Distinguish

• Confirmed change: Yuanta Securities raised its 2027 earnings forecast for Samsung Electronics and lifted its price target to 630,000 won.
• Figures that remain forecasts: The projected third-quarter DS operating profit of 10 trillion won and memory operating profit of 10.2 trillion won are not actual reported figures.
• Pricing test: The key test for the profit estimate is whether actual third-quarter ASP increases for DRAM and NAND match the respective quarter-on-quarter forecasts of 18% and 16%.
• Policy schedule: Samsung Electronics plans to unveil its 2027–2029 shareholder-return policy in January 2027, but specific details have yet to be confirmed.

Memory Prices and Shareholder Returns Will Shape the Next Assessment

The bullish scenario is one in which DRAM and NAND prices continue to rise and the memory business’s projected profit is confirmed in actual earnings. That would strengthen the rationale for both the upgraded 2027 earnings forecast and the 630,000 won target based on a 3.5x target P/B. The next event for investors to watch will be the shareholder-return policy scheduled for release in January 2027.

The trigger for the opposing scenario is clear. If actual memory price increases or Samsung Electronics’ memory operating profit fall short of Yuanta Securities’ forecasts, investors should first look for revisions to earnings estimates rather than focus on the price target. What has been confirmed so far is the forecast upgrade; Samsung Electronics’ actual third-quarter earnings and actual 2027 earnings remain unknown.

This article was automatically summarized and analyzed from the original news report. View Original Article (Infostock Daily)