Analysts at Eugene Investment Securities maintained a "Strong Buy" rating for Samsung Electronics and SK Hynix following a sharp KOSPI index plunge [1].

This divergence between market volatility and analyst confidence highlights a tension between short-term semiconductor sector concerns and long-term growth projections for South Korea's largest tech firms.

The market downturn occurred on May 28, 2024 [1]. During the sell-off, the share price of Samsung Electronics dropped to approximately 230,000 KRW [1]. Simultaneously, SK Hynix shares fell to about 1,600,000 KRW [1].

Despite these declines, Eugene Investment Securities analysts remained bullish on the two companies [1]. The firm set a target price of 560,000 KRW for Samsung Electronics [2]. For SK Hynix, the analysts established a target price of 3,700,000 KRW [2].

The KOSPI plunge was driven by broader market concerns regarding the performance of the semiconductor sector [3]. Such volatility often triggers rapid sell-offs in the Seoul Stock Exchange, which can lead to significant price swings for heavy-weight stocks like Samsung and SK Hynix.

Analysts from Eugene Investment Securities said the current market conditions do not change the fundamental value of these assets [1]. By maintaining the "Strong Buy" rating, the firm suggests that the recent price drops represent a buying opportunity rather than a structural decline in company value [2].

“Eugene Investment Securities maintained a "Strong Buy" rating for Samsung Electronics and SK Hynix.”

The gap between the actual trading prices and the target prices set by Eugene Investment Securities indicates a high level of confidence in a recovery. If the target prices of 560,000 KRW and 3,700,000 KRW are reached, it would signify a massive rebound from the May 2024 lows, suggesting that analysts view the semiconductor slump as a temporary correction rather than a permanent downturn.