Samsung Electro-Mechanics Target Price Raised to 3 Million Won on AI Server Component Demand

According to Kyobo Securities on July 6, the brokerage raised its target price for Samsung Electro-Mechanics to 3 million won from 1.2 million won, citing improved earnings driven by AI server component demand. The brokerage maintained its buy rating.

Kyobo forecasted second-quarter revenue of 3.41 trillion won and operating profit of 411 billion won, representing year-over-year increases of 22.4% and 93.0%, respectively, and exceeding market consensus of 382 billion won. The operating profit margin is expected to reach 12.1%. Rising demand for multilayer ceramic capacitors (MLCC) and flip chip ball grid array (FCBGA) packages for AI servers is driving both volume and price increases, supporting the earnings improvements.