An ugly earnings report from Samsung Electronics prompted a 3 percent drop in its shares on Thursday, but that hasn't deterred market bulls who seem unfazed by the weakening mobile division at the South Korean electronics giant.
The company reported a 24.6 percent fall in second-quarter operating profit to 7.2 trillion won ($7.03 billion) from a year ago, putting the company on track for its first annual profit decline in three years.
Its all-important telecom division saw income slump an annual 30 percent to 4.42 trillion won, as the company struggles to keep its grip on the smartphone market in the face of stiffening competition from low-cost rivals in China.
Still, many analysts CNBC spoke to shrugged off the grim results, citing optimism stemming from three areas: expectations for the company to return more of its near $60 billion cash pile to shareholders, strength in its chip division and its continued dominant position in the smartphone market.
"Global investors are pressuring the company to raise its dividend, buy back shares. Samsung Group is currently undergoing corporate restructuring, after that hopefully they will initiate better capital returns to be on par with [peers] like Apple," Nam Hyung Kim, managing director at Arete Research Asia told CNBC.
Samsung's dividend payout ratio – or how much of its earnings it pays out in dividends – is around 7 percent for the past 12 months, according to Thomson Reuters data, compared with Apple's 29 percent.
Kim has a 12-month price target of 1.7 million won for the company's stock - a 25 percent rise from current level of 1.37 million won. Samsung shares have fallen 0.4 percent so far this year, after recording a loss of 9.9 percent last year, marking the first annual decline since 2008.
According to Mark Newman, senior research analyst at Sanford C. Bernstein, the increasing strength in Samsung's semiconductor business should help drive earnings growth going forward.