Samsung Stock Poised to Soar to a Record High? Just Maybe…

Thanks to the unveiling of their new flagship Samsung Galaxy s6, shares of Samsung, are set to move higher as optimism of the tech giant’s smartphone lineup could break sales records.

There area analyst expectations that shares of Samsung should transform from a growth stock to a value one this year. The company should start to show healthy cash flows after their smartphone bubble went “poof!” There are also expectations that the company will start to increase shareholder returns in the near future.

Analysts, like Nomura, have raised its targets to 1.75 million Korean Won from 1.65 million won. This uptick in confidence is from the new smartphone line up and represents a 20 percent increase of Samsung’s record stock price of 1.58 million won. This was achieved in January of 2013.

The South Korean Kospi’s heaviest weighted stock up surged 6.9 percent since it launched its new smartphones on March 1. Shares of Samsung are up nearly ten percent year to date. Compared to last year’s dismal performance where shares lost 1.6 percent thanks to heavy competition, this makes Samsung look like a winner.

The Samsung Galaxy s6 and its sister phone, the S6 Edge, which is the only smartphone to have a curved display, have bother garnered positive reviews. This has boosted sentiment that the embattled tech giant’s smartphone division will regain its footing. Their market share, according to Strategy Analytics, has shrunk to 24.7 percent in 2014. In 2013, it stood at 32.2 percent.

This launch, of the s6, has reassured the world of Samsung’s ability to stay competitive. It has also dashed the low expectations investors had of the smartphone division and brought hope back to the company. Investors are feeling reassured. The phones showed vast designed improvements and analysts are impressed with the company’s vertical integration. They lived up to expectations, and maybe exceeded them. This will support them in the cutthroat smartphone market.