iM Securities Maintains Buy Opinion on Samsung E&A Amid Semiconductor Cycle Boost
iM Securities has maintained its investment opinion on Samsung Electronics' affiliate E&A as Buy and set a target stock price of 69,000 won. This is due to expectations that E&A will benefit from the semiconductor supercycle and energy investment projects in the U.S. and Middle East.
The researcher at iM Securities said that Samsung E&A has already exceeded its annual order guidance of 12 trillion won as it is expected to record more than 14 trillion won in orders by the third quarter of this year. Sales are also expected to increase 20.1% year-on-year to 10.8 trillion won, and operating profit is expected to increase 21.2% to 96.1 billion won.
Bae Se-ho, a researcher at iM Securities, said that Samsung E&A can expect a high level of new orders in the long term as it will benefit greatly from the semiconductor cycle. The increase in profit levels in 2026 and 2027 is very visible, and the expectation of winning liquefied natural gas (LNG) projects and announcing new shareholder return policies in early 2027 are factors that increase sufficient valuation.