Samsung Electronics, Samsung Electro-Mechanics, and now Samsung C&T. Samsung Group stocks have shown notable movements this year. With Samsung C&T (028260.KS), the de facto holding company of Samsung Group, recently on an upward trend, some brokerages are raising their target prices for the stock.
NH Investment & Securities said Tuesday it maintained its "buy" rating on Samsung C&T, citing expected business momentum and rising equity value, and raised its target price to 550,000 won from the previous 425,000 won.
Lee Seung-young, a researcher at NH Investment & Securities, explained the target price increase in a report, saying it reflected "rising investment value of affiliates such as Samsung Electronics (5.1%) and Samsung Life Insurance (19.3%), and an adjustment of the discount rate to target net asset value (NAV) from 45% to 40%."
He added, "In the construction division, expanded investment by client companies is expected to boost high-tech orders such as the Pyeongtaek Plant 5 (P5), and profitability is expected to improve as high-tech sales begin in earnest from the second half of this year." He said, "Through the expansion of large nuclear and small modular reactor (SMR) businesses, the company is also pursuing participation in projects including Vietnam's second nuclear plant, nuclear plants in Romania and Saudi Arabia, the Romania SMR, and the Sweden SMR."
He also noted that Samsung C&T is expanding its shareholder return policy. Lee said, "According to the 2026-2028 shareholder return policy, Samsung C&T plans to return 60-70% of dividend income from affiliates to shareholders," adding, "Most of the dividend income comes from Samsung Electronics and Samsung Life Insurance."
Earlier, SK Securities also raised its target price for Samsung C&T to 590,000 won from the previous 480,000 won, an increase of about 23%. It maintained its "buy" rating. Choi Kwan-soon, a researcher at SK Securities, said, "Considering the growth of the high-tech division this year and the medium-to-long-term potential in energy and SMR, the possibility of improvement in independent cash flow is also high," adding, "Amid rising equity value, attention should be paid to the improvement in its own business performance."
Choi also focused on the virtuous cycle from expanded shareholder returns. He said, "Samsung C&T's dividend for the 2026 fiscal year is calculated based on dividends received at the start of the year, and with the 2025 DPS of Samsung Electronics and Samsung Life Insurance increasing 15.4% and 17.8% respectively, dividend income from affiliates is estimated to have increased by about 100 billion won." He explained, "Accordingly, Samsung C&T's DPS this year is expected to be 3,500 won, up 25% from the previous year."
Hana Securities also said in a report Monday, "Even though the stock price has risen recently, Samsung C&T's valuation is still on the cheaper side," maintaining a "buy" rating and presenting a target price of 650,000 won.
According to the Korea Exchange, Samsung C&T closed at 432,000 won on Friday, up 22,000 won, or 5.37%, from the previous trading day.
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