[EQUITIES] Galaxy Note 7 recall to cost Samsung W2tr: Samsung Securities
By 이지윤Published : Sept. 30, 2016 - 16:14
[THE INVESTOR] Samsung Electronics on Sept. 30 projected that the ongoing Galaxy Note 7 recall worldwide would cost Samsung Electronics a combined 2 trillion won (US$1.80 billion) in the coming months this year.
“We are adjusting our estimates of the third-quarter operating profit from 7.8 trillion won to 7 trillion won,” said the securities firm. “Following the Galaxy Note 7 recall, the costs will be 1.5 trillion won in the third quarter and 500 billion won in the fourth quarter.”
![](//res.heraldm.com/content/image/2016/09/30/20160930001080_0.jpg)
Despite the recall costs, the firm raised the company’s target stock price from 1.8 million won to 2 million won, citing possible shareholder-friendly policies that are expected to be announced in its third-quarter earnings report next month.
The company’s abundant cash reserves also raised expectations for the company’s stock price. As of the second half of this year, Samsung had a record 77 trillion won in cash that could be used for dividends or merger and acquisition deals.
By Lee Ji-yoon (jylee@heraldcorp.com)
“We are adjusting our estimates of the third-quarter operating profit from 7.8 trillion won to 7 trillion won,” said the securities firm. “Following the Galaxy Note 7 recall, the costs will be 1.5 trillion won in the third quarter and 500 billion won in the fourth quarter.”
![](http://res.heraldm.com/content/image/2016/09/30/20160930001080_0.jpg)
Despite the recall costs, the firm raised the company’s target stock price from 1.8 million won to 2 million won, citing possible shareholder-friendly policies that are expected to be announced in its third-quarter earnings report next month.
The company’s abundant cash reserves also raised expectations for the company’s stock price. As of the second half of this year, Samsung had a record 77 trillion won in cash that could be used for dividends or merger and acquisition deals.
By Lee Ji-yoon (jylee@heraldcorp.com)