Goldman Sachs raises Samsung Electronics' target price to 490,000 won, expects memory demand to significantly outpace supply.

Goldman Sachs said in a research note that Samsung Electronics' second-quarter operating profit met expectations. The bank raised its earnings per share (EPS) forecasts for Samsung for 2026 to 2028 by around 2%, and lifted its 12-month target price for the stock from 480,000 won to 490,000 won. Goldman Sachs expects memory chip demand to significantly outpace supply, with the gap widening in 2027 and supply remaining tight in 2028. The bank noted that Samsung’s long-term agreements with major data center clients will provide better earnings visibility and downside protection. Additionally, Samsung aims to become a leader in the AI memory market; HBM4 is projected to account for over 60% of its HBM revenue in the second half of 2026, and the stock has significant upside potential for shareholder returns. The stock is currently trading at a 2027 forecast price-to-earnings (P/E) ratio of 3.1x and a price-to-book (P/B) ratio of 1.2x, with a shareholder return yield approaching 50%.