Meritz Securities raised the target stock price of Samsung Electro-Mechanics to 2.4 million won, stating that multi-layer ceramic capacitors (MLCC) for artificial intelligence (AI) servers are emerging as a key strategic asset.

Meritz Securities analyst Yang Seung-soo analyzed that ultra-compact and ultra-high-capacity MLCCs applied to AI servers have a very high production difficulty because they must achieve a high number of stacked layers within a limited area. Consequently, he explained that companies capable of stably supplying high-specification products are limited.

In particular, he predicted that a tight supply and demand environment will persist because while related demand is structurally increasing, especially centered around AI servers, the number of companies capable of supplying the products is limited. The securities industry is also paying attention to the possibility that the increase in demand for high-value-added MLCCs, driven by expanded investment in AI infrastructure, will lead to mid- to long-term earnings improvements for Samsung Electro-Mechanics.

The target price of 2.4 million won presented by Meritz Securities this time is a 14.3% increase from the target price (2.1 million won) in its previous report published on June 4.

In the market, Samsung Electro-Mechanics' stock price remained flat on the KRX (Korea Exchange) on this day, but drew an upward graph in the NXT market, reflecting the growing interest.

[This article was written with the assistance of AI. This article is intended to provide information for reference in making investment decisions and does not recommend the purchase or sale of specific stocks. Any losses incurred from stock investments are borne by the investor, and investment decisions must be made under sufficient review and responsibility.]