Goldman Sachs: Raises Samsung Electronics' Target Price to 490,000 Korean Won, Expects Memory Demand to Significantly Outstrip Supply

August 3rd, Goldman Sachs released a research report stating that Samsung Electronics' second-quarter operating profit met expectations. The bank raised its earnings per share forecast for 2026 to 2028 by about 2% and increased the 12-month target price from 480,000 Korean won to 490,000 Korean won.

The bank expects memory demand to significantly outstrip supply, with the gap widening in 2027 and supply remaining tight in 2028. Goldman Sachs noted that the company has signed long-term agreements with major data center customers, providing better profit visibility and downside protection.

Furthermore, the company aims to become a leader in the AI memory market, with HBM4 expected to account for over 60% of HBM revenue in the second half of 2026. Significant upside potential is expected in shareholder returns. The stock currently trades at a 3.1x forecasted P/E ratio for 2027 and a 1.2x P/B ratio, with a close to 50% shareholder return rate.