SEOUL: Samsung Electronics climbed to the highest in more than 15 months as Citigroup raised its share forecast and earnings estimates, citing expected demand for new Galaxy smartphones and components.
The stock rose 3.7pc to 1,474,000 won in Seoul, the highest since November 2013. Henry Kim, an analyst at Citigroup, raised his share price forecast on the Suwon, South Korea-based company by 5.9pc and increased earnings estimates for this year and next.
Samsung’s unveiling of Galaxy S6 phones this month has spurred a rally in the stock as confidence grows that the company can revive earnings and stem a slide in market share.
The stock has gained 8.6pc since it showed the new models, which include a version with a three-sided screen, even as Apple showed off its new watch. “Brokerages are revising up first and second-quarter earnings forecasts for Samsung Electronics, and it seems like foreign investors are purchasing the stocks on the profit optimism,” Park Seok Hyun, equity strategist at Seoul-based Eugene Investment & Securities, said.
Some analysts expect Samsung may report about 5.5 trillion won (€4.6bn) in operating profit for the March quarter and 7.7 trillion won for the three months ending June, when Galaxy S6 sales will be included, Mr Park said.
Samsung announced the S6 and S6 Edge, which features a screen that stretches down the right and left sides, at the Mobile World Congress in Barcelona, pictured, on March 1. The devices, featuring metal bodies and a fingerprint reader for added security, will go on sale in 20 countries from April 10.
