Goldman Sachs maintains a Buy rating on Samsung Electronics and adds 2028 full-year forecasts

Overview

This is a Goldman Sachs company research report on Samsung Electronics, with the core update being the introduction of full-year 2028 earnings estimates. The report gives 2028E EPS of W23,915 and emphasizes that the existing investment thesis, rating, and target price are unchanged.

Core views

The report maintains Buy ratings on both Samsung Electronics common stock and preferred stock. The valuation framework shows a 12-month target price of W205,000 for the common stock and W159,000 for the preferred stock. The preferred stock target price is based on a 22% discount to the common stock, derived from the average of the two-factor model discount and the average preferred-stock discount over the past month.

Analysis framework

The report primarily uses a 2026E EV/EBITDA-based SOTP valuation method and extends that framework to the 2028 full-year earnings forecast. Because the available body text is limited, the most verifiable information is concentrated in the EPS forecast, rating confirmation, target price confirmation, valuation method, and downside risks.

Methodology notes

• Valuation methodsev/ebitda-based sotp

  SOTP target price based on 2026E EV/EBITDA

  The 12-month target price for the common stock is derived using a 2026E EV/EBITDA-based SOTP method, and the report discloses a target price of W205,000.

• Valuation methodspreference share discount

  Preferred-stock discount relative to common stock

  The 12-month target price for the preferred stock is W159,000, based on a 22% discount to the common stock, calculated as the average of the two-factor model discount and the average discount over the past month.

• factor_profilegs factor profile

  Goldman Sachs factor profile

  The report discloses the GS Factor Profile for comparing covered companies across growth, financial returns, valuation multiples, and other dimensions, but the relevant excerpt in this input contains heavy OCR noise and does not allow extraction of more granular metrics.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Samsung Electronics common share 005930.KS

  Core covered name

  Strengths

  Goldman Sachs maintains a Buy rating and a 12-month target price of W205,000; 2028E EPS is newly estimated at W23,915.

  Weaknesses

  The available body text does not provide segment-level revenue, margin, or cash flow details, making it difficult to verify the forecast breakdown.

  Comparison

  The preferred stock target price is lower than the common stock target price, reflecting a 22% target discount.

  Risks

  Deterioration in memory supply-demand conditions, margin compression in smartphones, and loss of market share in mobile OLED.

• Samsung Electronics preference share 005935.KS

  Valuation reference for the company’s preferred share

  Strengths

  Also maintains a Buy rating, with a 12-month target price of W159,000.

  Weaknesses

  Valuation is affected by the assumption of a relative discount to the common stock, so changes in the discount may affect the target price.

  Comparison

  The target price is based on a 22% discount relative to the common stock, whose target price is W205,000.

  Risks

  If the preferred-share discount widens, or if the common stock fundamentals come under pressure, the preferred share may also be affected.

Key data

• 2028E EPSW23,915The newly added full-year 2028 earnings forecast.
• 12-month target price for common stockW205,000Based on a 2026E EV/EBITDA SOTP method.
• 12-month target price for preferred stockW159,000Based on a 22% target discount to the common stock.
• RatingBuyBoth the common and preferred shares are rated Buy, and the report says the rating is unchanged.
• Preferred-stock target discount22%Calculated as the average of the two-factor model discount and the average discount over the past month.

Impact & implications

The addition of the 2028 forecast shows that Goldman Sachs is extending its earnings outlook to a further horizon, but it is not changing its investment conclusion as a result. For investors, the focus is not on a rating change, but on whether the long-term earnings forecast, memory cycle, smartphone margins, and mobile OLED competitive landscape support the existing Buy thesis and target price.

Risks

• A material deterioration in memory supply-demand conditions.
• A sharp contraction in smartphone margins.
• Loss of mobile OLED market share.
• The report’s disclosure sections and appendix text contain significant OCR noise, creating a risk to information completeness in interpretation.

What to watch

• Whether 2028E EPS of W23,915 is revised as the memory cycle and end-demand conditions change.
• Whether the EV/EBITDA SOTP assumptions behind the W205,000 common-stock target price change.
• Whether the 22% discount of the preferred stock relative to the common stock remains stable.
• Whether the three downside risks—memory supply-demand, smartphone margins, and mobile OLED share—deteriorate materially.