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Samsung Severely Undervalued With Cash 35% of Mkt Cap: Bernstein 2014-07-08 22:16:57.961 GMT
By Sarah Gill July 9 (Bloomberg) -- Samsung best positioned for long term; common and pref shrs remain undervalued: Bernstein analyst Mark Newman in a note. * Memory business likely to account for increasing part of oper. profit going fwd * Most important stk driver is going to be what it does with cash, ongoing restructure of Samsung Group; both may give upside to shrs, timing unclear * Cash may be used for buybacks and/or divs. * Est. Samsung shipped 75m smartphone units in 2Q, down 20% q/q, flat y/y * Rates Samsung outperform * 2m won PT implies ~25% discount to sum of the parts value, is based on 9x 2015 est. P/E * Samsung 48 buys, 5 holds, 1 sell, avg. PT 1,663,659 won: Bloomberg data * Samsung shrs down 5.6% YTD vs KOSPI Index -0.2%, KOSPI Electrical and Electronic Equip Index +1.5%
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To contact the reporter on this story: Sarah Gill in sydney at +61-2-9777-8641 or sgill23@bloomberg.net To contact the editor responsible for this story: Jan Dahinten at +65-6212-1164 or jdahinten@bloomberg.net