Even though Samsung’s fourth quarter peformance did not perform as well as predicted, there are at least 10 analysts assume its share price might increase by 40% in 12 months.
Its share price declined three years in a row. Accoring to the investigation did by Bloomberg from 38 analysts, they assumed its share will increase in 12 months with an averagetarget price at 1.62 million KRW.
Such prediction was based on its latest quarters performance. Daishin Securities and Hyundai Securities reiterate Samsung’s buy rating.
Its current market value is 8 times of its last year’s profit. Its PE ratio is behind Apple’s 10.5 PE ratio, but it is higher than the average PE ratio 6.7.
Samsung will reveal the performances of related divisions later. The smartphone business grows slower while the semi-conduct division has potential to be the most profitable department then. Samsung’s market value lost $ 8 billion in last fiscal earnings.
Kwon Oh-Hyun claimed that the competition become intense. He urged its employees to give suggestions in the smartphone, television and flash chip business to obtain its technical leadership.
Samsung made adjustment in the management group. It appointed new mobile device officer Koh Dong Jin. It claimed to focus on software innovation. Koh Dong Jin was responsible for Samsung Pay and Knox security software.
Greg Roh from HMC Investment Securities claimed that Samsung could consider a different development direction, such as reducing expense, launching new brands and innovative technology. Innovation is important for its mobile business.
