Samsung Electro-Mechanics is reaching new heights, driven by expectations of strong performance due to rising prices of multilayer ceramic capacitors (MLCC) for artificial intelligence applications.
According to the Korea Exchange, as of 10:25 a.m. on May 29, Samsung Electro-Mechanics shares rose by 189,000 won (10.22%) to 2,038,000 won, marking an all-time high.
The company's market capitalization now stands at 152.1511 trillion won, placing it fourth in the KOSPI rankings, surpassing Hyundai Motor.
Analysts attribute the surge in buying interest to upgraded target prices in response to anticipated strong earnings from the rising prices of MLCCs for AI.
On the same day, Hyundai Motor Securities raised its target price for Samsung Electro-Mechanics from 1,030,000 won to 2,300,000 won, citing sustained positive market conditions.
Kim Jong-bae, a researcher at Hyundai Motor Securities, stated, "It is important to pay attention to the rising trend in MLCC prices due to increased overall utilization rates and the accelerating market cycle. The company's market cycle is expected to continue in the long term."
He added, "The key triggers for the stock price increase are the market conditions, technological capabilities, market position, and performance, all of which Samsung Electro-Mechanics possesses."
The previous day, Daol Investment & Securities also raised its target price for Samsung Electro-Mechanics to 2,300,000 won, noting that the company stands to benefit from simultaneous booms in MLCCs and flip-chip ball grid arrays (FC-BGA), indicating potential for further performance improvement.
* This article has been translated by AI.
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