Amid growing expectations for mid- to long-term growth as securities firms successively raise their target prices, Samsung Electro-Mechanics showed a flat-to-slightly-positive trend.

On the 22nd, Samsung Electro-Mechanics traded 0.09% higher than the previous trading day during the session. While some profit-taking sell orders are being released following the recent surge, expectations of earnings improvement centered around institutions and brokerages continue, supporting the downside.

On this day, Meritz Securities raised its target price for Samsung Electro-Mechanics by 16.7%, from 2.4 million won to 2.8 million won, while maintaining its investment opinion at Buy. Meritz cited the potential for improved profitability in the multilayer ceramic capacitor (MLCC) and ABF substrate businesses as the key reasons for the upward revision.

As the AI server and high-performance semiconductor markets expand, demand for high-value-added MLCCs is increasing, and ABF substrates, a key material in semiconductor packaging, are also expected to continue their upward price trend alongside improving supply conditions. Reflecting these environmental changes, securities firms raised their 2027 operating profit forecasts above previous levels and also upwardly adjusted the price-to-earnings ratio (PER) applied to their target price calculations, reflecting the revaluation of comparable global peers.

In particular, the fact that Samsung Electro-Mechanics' earnings per share (EPS) growth rate is expected to significantly outpace global competitors was positively evaluated. Meritz analyzed that considering its growth potential, the company's current valuation remains at an attractive level.

The market views the expansion of AI data center investment and the increase in high-performance semiconductor demand as key growth drivers. There are also forecasts that demand for server MLCCs and advanced package substrates will simultaneously increase, potentially widening the scope of earnings improvement.

However, some analyses suggest that short-term volatility may occur given the recent sharp rise in the stock price. In fact, on this day, the stock price rose only 0.09% despite the target price hike, showing a cautious wait-and-see attitude.

A securities industry official evaluated, saying, "As the expansion of AI infrastructure investment begins in earnest, earnings expectations for high-value electronic component manufacturers are rising," and added, "Given that Samsung Electro-Mechanics simultaneously possesses two growth axes in MLCCs and ABF substrates, its potential for mid- to long-term benefits is significant."

[※ This content was produced with the assistance of AI and should not be used as a basis for investment decisions. Any losses resulting from investments are the responsibility of the investor.]