Crédit Suisse Revises Price Target For Samsung

Kevin February 7, 2013 0

Credit Suisse

Crédit Suisse feels that the Korean Smartphone giant Samsung’s strategy for 2013 has been grossly underestimated by the market. They mentioned this while upwardly revising the price targets for Samsung’s stock. Analysts from the organization feel that Samsung has a much more aggressive approach for their Smartphone business in 2013 than what had been previously estimated by the market and revealed in their earlier price target for the company.

They believe that Samsung has a two-pronged approach when it comes to their Smartphones and tablets business for the New Year. First, they would be looking to keep churning more and more high end Smartphones, such as the Galaxy Note 2 and the upcoming Galaxy S IV and second they would be looking to saturate the market with more lower-end Smartphones to completely eliminate the basic phones category out of the market. This highly anticipated move will not only ensure that Samsung’s product mix improves over the course of the year, but it shall also improve the margin of profit from the mobile phone business for the South Korean company.

Crédit Suisse feels that 2013 will be a year which will be very profitable for Samsung. To their credit the company is gearing up in that direction building a stronger product portfolio and offering more value-based products throughout the price spectrum. Their analysis support that the earlier market predictions have been a gross misunderstanding of what Samsung has in store for both their consumers and invertors this year.

Crédit Suisse has retained the outperform rating on Samsung and also raised their estimated price target for the stock price to 1.9 million won (roughly $1,743) from the previous estimated 1.72 million won. At the time of filing this news, Samsung’s shares were trading at 1.425 million won (down 0.1%) at the Seoul stock exchange during afternoon trading.

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