Goldman Sachs Maintains BUY on Samsung Biologics Co., with a 12-Month Target Price of W2,000,000

Overview

This is a Goldman Sachs review of Samsung Biologics Co.'s (207940.KS) 2Q26 results. The report maintains a BUY rating and believes revenue was in line with expectations and net profit growth remained resilient. Although gross margin was below expectations due to upfront costs related to Plant 5 and the newly acquired U.S. site, FY26 revenue growth is still expected to reach the upper end of guidance.

Core views

Goldman Sachs' core view is that the risk-reward remains attractive at the current valuation. Improved 2H26 order-conversion visibility, revenue contributions from Plant 5 and the U.S. facilities, and execution of the PolyPeptide integration are the main catalysts for the share price. Delays to the Plant 6 capex announcement may continue to weigh on sentiment, but management said construction is still planned to begin within FY26, leaving the long-term expansion roadmap unchanged.

Analysis framework

The report analyzes quarterly results versus Goldman Sachs' forecasts, management guidance, backlog and opportunity pipeline, capacity ramp-up, M&A strategy, and the valuation framework. For valuation, Goldman Sachs derives a 12-month target price of W2,000,000 using a 12-month forward P/E multiple of 40x and makes minor adjustments to its 2026-2027 EPS forecasts.

Methodology notes

• Valuation methods12m forward P/E

  12-month forward P/E valuation

  Goldman Sachs uses a 12-month forward P/E multiple of 40x as the valuation basis, deriving a 12-month target price of W2,000,000, equivalent to approximately 46% upside.

• company_analysisearnings_revision

  Minor earnings forecast adjustments

  The report adjusts its 2026-2027 EPS forecasts by -0.3% and -0.1%, respectively, and notes that its assessment of the sustainability of revenue growth is more optimistic than Visible Alpha Consensus Data.

• risk_profileGS Factor Profile

  Goldman Sachs factor profile

  GS Factor Profile compares the individual stock with the market and industry peers across growth, financial returns, valuation multiples, and composite indicators.

• m_and_aM&A Rank

  M&A likelihood score

  Goldman Sachs assigns the company an M&A Rank of 3, indicating a relatively low probability of being acquired and typically not included in the target price.

Asset mapping & comparison

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

• Samsung Biologics Co. (207940.KS)

  Core covered asset; BUY rating

  Strengths

  Strong revenue growth, stable CMO backlog, expected growth contributions from Plant 5 and U.S. facilities in 2H26, and the PolyPeptide acquisition's potential to expand peptide and multimodal CDMO capabilities.

  Weaknesses

  2Q26 gross margin was below expectations, delays to the Plant 6 capex announcement have raised concerns over demand visibility, and post-acquisition earnings improvement at PolyPeptide remains to be validated.

  Comparison

  Goldman Sachs says its 2026-2028 earnings or revenue forecasts are more optimistic than Visible Alpha Consensus Data, mainly due to greater confidence in the sustainability of revenue growth.

  Risks

  Intensifying competition, slower-than-expected capacity ramp-up, regulatory approval risks, and risks related to corporate governance and cross-shareholdings.

• PolyPeptide

  Proposed acquisition target; vehicle for peptide CDMO expansion

  Strengths

  Provides Samsung Biologics Co. with a path to rapidly enter the large, high-growth peptide market and expand multimodal capabilities beyond traditional antibody manufacturing.

  Weaknesses

  Current margins are relatively low, and the key post-transaction issues will center on execution, synergies, and delivery of earnings contributions.

  Comparison

  Compared with building peptide capabilities entirely in-house, the acquisition could shorten the time required to enter new modalities.

  Risks

  The transaction is expected to close in YE26 and carries risks related to integration execution, margin improvement, and realization of commercial synergies.

Key data

• 2Q26 revenueW1.32tnUp 30.2% year over year, 0.5% above Goldman Sachs' estimate, and broadly in line with expectations.
• 2Q26 net profitW431bnUp 33.0% year over year but 8.2% below Goldman Sachs' estimate, mainly due to lower-than-expected gross margin.
• 2Q26 gross margin53.0%Below Goldman Sachs' forecast of 55.3%, affected by upfront costs related to Plant 5 and the newly acquired U.S. site.
• FY26 revenue growth guidance15%-20%Management expects to reach approximately the upper-end level of 20%.
• Contracted CMO backlogUS$21.7bnBroadly stable versus US$21.2bn in FY25 and US$21.4bn in 1Q26.
• Non-binding opportunity pipelineUS$2.6bnThe company is discussing long-term supply agreements with several major pharmaceutical companies and expects to sign multiple contracts during the year.
• 2026E revenue forecastW5,461.1bnGoldman Sachs' new forecast, below the previous forecast of W5,589.2bn.
• 2026E EPS forecastW42,737Goldman Sachs' new forecast, slightly below the previous forecast of W42,852.
• 12-month target priceW2,000,000Based on a 12-month forward P/E multiple of 40x.
• Current price and upsideW1,372,000 / 45.8%Price and implied upside disclosed on the report cover.

Impact & implications

If management achieves the upper end of FY26 revenue growth guidance, successfully converts large-pharma orders in 2H26, and the PolyPeptide acquisition improves its low margins, Samsung Biologics Co.'s medium- to long-term growth narrative will be strengthened. Conversely, if Plant 6 progress is further delayed, order-signing momentum falls below expectations, or the capacity ramp-up is unsuccessful, the market may continue to question medium-term demand visibility.

Risks

• Intensifying competition from domestic and global competitors.
• Slower-than-expected capacity ramp-up, particularly for Plant 5, the U.S. facilities, and future Plant 6 progress.
• Approval-related risks involving multiple drug regulatory agencies.
• Corporate governance risks, including litigation and cross-shareholding issues.
• Delays to the Plant 6 capex announcement may be interpreted by investors as weaker medium-term demand visibility.
• Integration execution and margin improvement following completion of the PolyPeptide acquisition may fall short of expectations.
• Final terms of labor negotiations may affect financial performance.

What to watch

• The number and timing of long-term supply agreements signed with large pharmaceutical companies in 2H26.
• Conversion of the non-binding US$2.6bn opportunity pipeline into formal orders.
• Plant 5 qualification, capacity ramp-up, and revenue contribution timing.
• Completion of qualification and revenue recognition at the U.S. facilities after 3Q26.
• Whether Plant 6 construction begins within FY26 as stated by management.
• Whether the PolyPeptide transaction closes by YE26 and the margin improvement plan following completion.
• Whether FY26 revenue growth reaches approximately the upper-end guidance level of 20%.