South Korean brokerage houses raised their price target for Samsung Electronics Co. as recovery in global chip demand revived foreign appetite in the bellwether blue-chip stock.

Heungkuk Securities Co. in a report released Monday upgraded its outlook on the world’s largest chipmaker after Micron Technology Inc. raised its earnings guidance for the fiscal third quarter ending May. The U.S. chip manufacturer now estimates revenue of $5.2 billion to $5.4 billion, up from its prior forecast of $4.6 billion to $5.2 billion.

Micron shares rallied as a result, and investors are now turning toward global memory chip giant Samsung Electronics. Offshore investors net purchased the Korean blue-chip stock over the past three straight days, buying a total of 463.7 billion.

On Tuesday, Samsung Electronics’ shares rose 0.39 percent to close at 51,400 won ($42).

Byun Joon-ho, researcher at Heungkuk Securities, there is a 72 percent likelihood that Samsung Electronics’ share price would rise within four weeks after Micron sees an 8-percent jump in its shares.

The rosy outlook was shared by other Korean brokerages. Kiwoom Securities Co. bumped up its price target for the Korean tech giant to 62,000 won from 60,000 won. Shinyoung Securities set the target price at 60,000 won apiece and Mirae Asset Daewoo at 68,000 won. The average analyst price target is 64,000 won, according to market tracker FnGuide.

Global demand for semiconductors has remained strong despite the coronavirus pandemic. Korean exports of semiconductors jumped 7.1 percent on year in May, even as total outbound shipments slumped 23.7 percent.

By Shin Yoo-kyung and Kim Hyo-jin

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