A woman passes the Samsung Electronics logo on the company’s Seocho building in Seoul on January 30, 2020.
Jung Yeon-je | AFP via Getty Images
Samsung Electronics is expected to launch its latest Galaxy smartphone on Thursday, ahead of schedule.
But that is not why analysts are optimistic about stocks. Unlike 7 or 8 years ago, Samsung’s performance in the market today is mainly driven by its semiconductor unit, analysts say. And they like the look in 2021.
“Samsung’s shares are now more related to the prospects of its semiconductor business, which we expect to represent 61% of its operating profit, compared to the smartphone-related business, which is expected to represent only 24% of its operating profit this year,” said Sanjeev Rana, an analyst at CLSA.