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KB Securities raises Samsung Electro-Mechanics target price to 3 million won, expects MLCC shortage for two years
🇰🇷 South Korea /Economy & Trade

KB Securities raises Samsung Electro-Mechanics target price to 3 million won, expects MLCC shortage for two years

From Chosun Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

Analysis Sources not specified Context piece
  • KB Securities raised Samsung Electro-Mechanics' target price by 36% to 3 million won, citing a boom in MLCC and packaging substrate markets.
  • The brokerage maintained its 'Buy' investment rating for the company.
  • The firm expects the tight supply of MLCCs to continue for at least two years, driving growth for Samsung Electro-Mechanics.

KB Securities has significantly increased its target price for Samsung Electro-Mechanics, raising it by 36% from 2.2 million won to 3 million won. The brokerage firm cited the current booming market conditions for multilayer ceramic capacitors (MLCCs) and packaging substrates as the primary drivers for this upward revision. The investment rating remains at 'Buy'.

Lee Chang-min, an analyst at KB Securities, highlighted the expanding growth potential in both the MLCC and packaging substrate businesses as the key reasons behind the increased target price. The closing price of Samsung Electro-Mechanics on the previous trading day was 2.2 million won.

MLCC and packaging substrate industries have entered a super boom phase

— KB SecuritiesKB Securities explained the market conditions driving their upgraded target price for Samsung Electro-Mechanics.

The firm anticipates that the tight supply situation for MLCCs will persist for at least the next two years. This sustained shortage is expected to benefit Samsung Electro-Mechanics, a major global supplier of these components, by ensuring strong demand and potentially favorable pricing. The company's strategic position in these critical electronic components markets underpins the positive outlook.

MLCC supply shortage will last for at least two years

— KB SecuritiesThe brokerage firm provided a forecast for the MLCC market, indicating continued tight supply.
DistantNews Editorial

Originally published by Chosun Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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