Samsung Electronics Co. peaked to its highest over 15 months as Citigroup Inc. raised its share forecast and earnings estimates, citing expected demand for new Galaxy smartphones and parts.
The stock value reached 3.7 percent to 1,474,000 won in Seoul, the most noteworthy since November 2013. Henry Kim, an expert at Citigroup, raised his offer cost figure on the Suwon, South Korea-based Company by 5.9 percent and expanded profit estimates during the current year and next.
Samsung’s uncovering of Galaxy S6 phones earlier has prodded a rally in the stock as certainty develops that the organization can resuscitate income and stems a slide in piece of the overall industry. The stock has increased 8.6 percent since it demonstrated the new models, which incorporate a rendition with a three-sided screen, even as Apple Inc. flaunted its new watch. That supported Samsung’s market capitalization by 17.2 trillion won ($15 billion).
“Brokerages are revising up first- and second-quarter earnings forecasts for Samsung Electronics, and it seems like foreign investors are purchasing the stocks on the profit optimism,” Park Seok Hyun, equity strategist at Seoul-based Eugene Investment & Securities Co., said over the phone.
A few analysts expect Samsung may report around 5.5 trillion won in operating profit for the first quarter and 7.7 trillion won for the three months finishing June, when Galaxy S6 deals will be incorporated, Park said.
Samsung declared the S6 and S6 Edge, which features a screen that extends down the right and left sides, at Mobile World Congress in Barcelona on March 1. The gadgets, offering metal bodies and a unique fingerprint reader for more security, will go at a bargain in 20 nations beginning April 10.
The organization likewise is including payment software that makes the gadgets compatible with around 90 percent of card readers. Samsung purchased LoopPay Inc. a month ago to help it create innovation for mobile payments as it goes up against Apple’s payment system.