Nomura Lifts Samsung SDI Price Target to $290, Citing Earnings Rebound Prospects
Nomura Securities has upgraded Samsung SDI from Neutral to Buy and raised its price target from $157 to $290, signaling renewed confidence in the South Korean battery maker’s growth outlook.
According to industry sources on Wednesday, the Japanese investment bank expects Samsung SDI’s earnings to recover in the fourth quarter despite a steep third-quarter loss. Citigroup also raised its target price for Samsung SDI to $250.
As of Tuesday’s close, Samsung SDI shares were trading at about $236.
Samsung SDI posted an operating loss of around $420 million for the third quarter, significantly below market expectations of roughly $215 million. Revenue fell 22.5% year-over-year to $2.18 billion, while net income turned positive at $4.3 million, helped by gains from the sale of its polarizer film business.
The company’s battery division generated about $2.01 billion in revenue, down 23.2% from a year earlier, with an operating loss of $450 million. The decline was largely driven by slowing electric vehicle battery demand and the impact of U.S. tariffs on energy storage systems (ESS).
Meanwhile, the electronic materials division reported $164 million in revenue, up 6.2% from the previous quarter but down 12.1% year-over-year. Operating profit increased to $27.7 million from $23.6 million in the second quarter.
Despite near-term headwinds, Samsung SDI expressed optimism about its fourth-quarter performance.
“We expect results to improve in the fourth quarter, supported by growth in the European EV market and the U.S. energy storage sector,” the company said in a statement.
Nomura analysts added that stabilizing global demand and easing inventory pressures could help Samsung SDI return to profitability sooner than previously expected.
