Goldman Sachs Cuts Its Price Target for South Korea’s KOSPI
Goldman Sachs has minimize its 12-month KOSPI goal by 25%, to 9,000 from 12,000. The new determine returns the financial institution to the place it stood earlier than its June 3 improve.
The financial institution estimates chip valuations now suggest a 65% fall in 2027 sector earnings. It calls that view excessively pessimistic. Samsung Electronics and SK Hynix report this week, providing the primary check of that view.
Record Chip Profits Have Not Stopped the Selling
The KOSPI closed at 5,550.30 on October 23, in line with Google Finance. Its 2026 acquire has shrunk to twenty-eight.79%, from about 116% at the June peak. Even after the minimize, the 9,000 goal implies about 62% upside from the KOSPI’s October 23 shut.
Memory chipmakers make up about half the index. Their shares have saved falling via report revenue steerage. Samsung guided a third-quarter operating profit of about 107.4 trillion received on October 8, about 20% above the second quarter.
Samsung shares fell 2.42% that day, to 262,000 received. They have since dropped about 18%, closing at 215,500 received on October 23.
SK Hynix closed at 1.277 million received, about 57% beneath its 52-week high. Investors look like pricing in a future downturn in reminiscence chip income.
Two different indicators add strain on the index heading into earnings.
A Chart Line and Underwater Retail Add Pressure
Fidelity’s Jurrien Timmer mentioned the KOSPI is barely holding a possible head-and-shoulders neckline. A break beneath that line is usually learn as an indication of additional losses. His chart locations it close to 5,451, about 2% beneath the October 23 shut.
Retail buyers are already underwater. Their internet purchases this yr carry an estimated common entry degree close to 6,550, Global Markets Investor mentioned. That leaves the everyday retail place about 15% down, earlier than counting leveraged bets.
Those pressures put extra weight on what the chipmakers say subsequent.
Earnings Week Puts the 65% Assumption to the Test
SK Hynix holds its third-quarter name on October 28. Samsung reports full results with division figures on October 29.
Management feedback on 2027 pricing and orders could matter greater than third-quarter income. That outlook will assist present whether or not the market’s 65% assumption is just too harsh, as Goldman argues.
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