Eben@CANSLIM ResearchJ.P. Morgan has reiterated its Overweight rating on Samsung Electronics (005930.KS) with a June-2027 price target of W400,000, arguing the memory profit cycle remains intact despite near-term currency headwinds. The broker trimmed its FY26E and FY27E adjusted EPS by 4.0% and 4.6% respectively on a stronger Won, but raised its HBM volume, pricing and margin assumptions. J.P. Morgan recommends investors accumulate the stock, calling the risk-reward favourable on a medium-term horizon.
Key Takeaways
- J.P. Morgan rates Samsung Electronics (005930.KS) Overweight with a Jun-27 price target of W400,000, versus a reference price of W260,500 on 18 Sep 26.
- The broker cut FY26E adjusted EPS to W48,788 (from W50,797) and FY27E to W68,995 (from W72,303), citing Won appreciation against the US dollar.
- J.P. Morgan now expects Samsung’s HBM value share to rise from 20% in 2025 to 34% in 2026E and 39% in 2027E, with a blended HBM ASP increase of 64% year-on-year in FY27E.
- Samsung’s 3Q26E operating profit is forecast at W101.8trn, down 6.7% from the previous estimate of W109.1trn and 6% below consensus of W108.8trn.
- The next key watch point is a potential interim shareholder return update at the 3Q26 results call, with an official policy update due at the 4Q26 results.
Lead Analysis: What the J.P. Morgan 3Q Preview Says
In a report titled “3Q preview: strong memory operation intact amidst near-term FX headwinds; OW with PT of W400k,” J.P. Morgan analyst Sangsik Lee argues that Samsung Electronics’ memory operation remains fundamentally sound and that recent share price underperformance reflects short-term factors rather than a deterioration in the business. Samsung shares have risen just 1% since August, against a 14% gain for memory peers and 2%/3% for the Kospi and SOX respectively, which the analyst attributes to FX headwinds and limited disclosure on shareholder returns.
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