Samsung Electro-Mechanics Target Price Raised 66.7% to 1.75M Won Amid Foreign Investor Buying

According to IBK Investment & Securities, on July 16 the firm raised its target price for Samsung Electro-Mechanics (009150) to 1.75 million Korean won from 1.05 million won, a 66.7% increase, maintaining a "buy" rating. Analyst Kim Un-ho attributed the upgrade to foreign investor confidence in the company's AI chipset substrate (FC-BGA) and multilayer ceramic capacitor (MLCC) products, which are experiencing strong long-term growth.

Foreign investor shareholding in Samsung Electro-Mechanics has expanded from a June 22 low of 37.5% to 40% as of July 15, bucking the trend of reducing positions in other AI-related firms. IBK expects the company's 2026 capital expenditure to reach 4.7 trillion Korean won, substantially higher than historical annual levels of around 1 trillion won, driven by rising AI semiconductor demand and new customer acquisition.