Samsung SDI Faces Divergent Outlooks: DB Sets 840,000 Won Target on ESS Recovery, LS Cut to 419,000 Won Citing EV Battery Decline

According to reports from DB Financial Investment and LS Securities on July 7, South Korean securities analysts issued sharply conflicting outlooks for Samsung SDI. DB Financial maintained a 'buy' rating with a 840,000 won price target, citing anticipated second-quarter breakeven profitability driven by ESS tariff refunds and AMPC tax credits worth 82.4 billion won. LS Securities downgraded its target to 419,000 won and maintained a 'hold' rating, pointing to persistent weakness in EV battery operations, with Samsung SDI's global battery installation volume dropping 35% year-over-year to 1.6 GWh in May, and market share falling to 1.4%.

LS Securities noted intense pricing competition in the prismatic battery market and customer concentration risks, with over 80% of sales tied to Volkswagen and BMW groups that are diversifying battery suppliers and increasing CATL sourcing. The firm also cited concerns that lower capacity utilization rates pose profitability risks given high capital expenditure and depreciation in the battery industry.