BNK cuts Samsung Electronics target to ₩270,000, holds neutral semiconductor view

  • BNK Securities cut Samsung Electronics' target price and downgraded its rating to hold.
  • Samsung's target fell to ₩270,000 from ₩300,000, while SK Hynix remained at ₩1.48 million.
  • Micron will report fiscal fourth-quarter results on the 30th ahead of Korean chipmakers' earnings.

BNK Securities lowered its Samsung Electronics target price to ₩270,000, or approximately $200, from ₩300,000 and downgraded the stock to hold, while maintaining a ₩1.48 million, or approximately $1,100, target and hold rating for SK Hynix. Analyst Lee Min-hee said memory demand momentum had peaked and was slowing into the second half, citing reduced memory content in PCs, smartphones and next-generation AI servers. BNK also pointed to expanding production capacity, changing HBM4 competition, higher interest rates and the stronger Korean won as risks to earnings and valuations. Its forecasts for third- and fourth-quarter operating profit were reduced for both companies. The cautious stance contrasts with major brokerage consensus, which has raised third-quarter profit estimates for Samsung Electronics and SK Hynix, while TrendForce expects further quarterly gains in DRAM and NAND prices. Micron's fiscal fourth-quarter results on the 30th are expected to provide a key indicator of AI-related memory demand. Some market participants argue that earnings stability, profitability and return on equity in 2026 and 2027 matter more than slowing growth rates.

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