Goldman Sachs has reduced its 12-month price target for the KOSPI index by 25%, lowering it from 12,000 to 9,000. This adjustment reverts the bank's outlook to the level held prior to its June 3 upgrade. Despite the reduction, the new target suggests a potential 62% upside from the index's closing price of 5,550.30 on October 23.
The bank notes that current chip valuations reflect market expectations of a 65% decline in sector earnings by 2027, a forecast Goldman Sachs characterizes as overly pessimistic. Memory chipmakers account for approximately half of the KOSPI index, and their performance remains a critical factor for the broader market trajectory as investors anticipate a future downturn in profits.
Samsung Electronics and SK Hynix are set to report their financial results this week, providing the first major test of these market assumptions. Samsung previously reported a third-quarter operating profit forecast of ₩107.4 trillion on October 8, yet its shares have since declined by approximately 18%, closing at ₩215,500 on October 23.
SK Hynix shares closed at ₩1.277 million, marking a 57% decrease from their 52-week high. Additional technical and market pressures persist, as the KOSPI index is hovering near a potential head-and-shoulders neckline at 5,451. Furthermore, retail investors currently hold positions with an estimated average entry level of 6,550, leaving many down by about 15%.
