Alphabiz - Goldman Sachs Raises KOSPI Target to 12,000 on Strong Earnings Outlook

Photo courtesy of Yonhap News

[Alpha Biz= Paul Lee] SEOUL, June 4 — Goldman Sachs has raised its target for South Korea’s benchmark KOSPI index to 12,000 from 9,000, citing strong earnings growth and continued undervaluation in the memory semiconductor sector.

In a report released on June 3, the investment bank said the index has about 37% upside potential, maintaining an overweight stance despite the possibility of near-term corrections.

Goldman Sachs highlighted robust earnings momentum, particularly in the IT sector, where profits surged 185% in the first quarter. It noted that consensus earnings growth estimates for KOSPI-listed firms have been revised sharply upward from 48% at the start of the year to 277%.

However, the bank warned that market gains have been heavily concentrated in key players such as Samsung Electronics and SK hynix, and that rising speculative trading through leveraged ETFs by retail investors could increase downside risks during corrections.

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)