Goldman Sachs expects Samsung Electronics' operating profit to surge more than 5 times this year, raising its target price and earnings forecast, with a rating of "Buy."

Goldman Sachs published a report, raising the target price for South Korea's Samsung Electronics (005930.KS) from the previous KRW 205,000 to KRW 260,000, with a rating of "Buy." The firm indicated that the short-term memory fundamentals of Samsung Electronics are sound, and higher R&D spending and AI/server exposure lay the foundation for maintaining long-term leadership. Goldman Sachs also raised its operating profit forecast for Samsung Electronics this year from the previously expected KRW 181 trillion to KRW 239 trillion, reflecting a significant upward revision in DRAM (Dynamic Random Access Memory)/NAND flash price forecasts.

Goldman Sachs now expects conventional DRAM prices to rise by 251% this year, while NAND flash prices are expected to increase by 164%. Additionally, HBM revenue is expected to rise by 158% year-on-year to USD 15 billion (driven by Google's TPU layout and the expansion of HBM4 supply to NVIDIA). Goldman Sachs anticipates that Samsung Electronics' operating profit will soar more than fivefold year-on-year this year, with a return on equity (ROE) expected to reach 37%, a record high. Goldman Sachs has raised its earnings per share forecast for Samsung Electronics for 2026 to 2028 by 25% to 36%. The current stock price corresponds to a projected price-to-earnings ratio of 7 times and a projected price-to-book ratio of 1.8 times for 2027