SK Hynix received sharply divergent target prices from Korean brokerage firms on the 9th, with BNK Investment Securities setting a target of 1.85 million won versus KB Securities' 4.2 million won - a gap exceeding 2 million won. BNK issued a 'HOLD' rating with the 1.85 million won target on the previous day, 10.9% below the 8th's closing price of 2.076 million won. The split reflects differing assessments of SK Hynix's upcoming American Depositary Receipt (ADR) listing on the 10th (local time) and the sustainability of the AI semiconductor rally. The divergence emerged as KOSPI experienced volatility driven by adjustments in leading stocks Samsung Electronics and SK Hynix.
BNK Investment Securities Sets 1.85 Million Won Target Citing Demand Slowdown
According to the financial investment industry on the 9th, BNK Investment Securities presented an investment opinion of 'HOLD' and a target price of 1.85 million won for SK Hynix on the previous day. This represents 10.9% below the 8th's closing price of 2.076 million won and 13.8% below the 9th's price of 2.147 million won as of 2:38 PM. The market interprets this as effectively a sell recommendation.
Lee Min-hee, a researcher at BNK Investment Securities, stated: "AI server DRAM and solid-state drives (eSSD) are still in a supply shortage situation. However, the competitive infrastructure investment by hyperscalers providing orders is no longer valid." Lee continued: "Considering next year's expectations for memory and CPU price increases and the spec upgrades of new agent AI models, it appears that capital investment increases of at least 30-40% or more will be necessary next year. However, the possibility of future investment pace adjustment is increasing, so there is a gap with current semiconductor company earnings forecasts."
Lee projected: "The recent sharp stock price decline reflects demand slowdown, and earnings momentum will also break after year-end."
KB Securities Projects 4.2 Million Won on ADR Listing Effect
In contrast, KB Securities presented a target price of 4.2 million won on the 9th.
Kang Da-hyun, a researcher at KB Securities, stated: "The case of TSMC, which listed ADR in the US in October 1997, has significant implications. Based on the expansion of the global investor base, ADR formed a premium compared to the main stock, and in this process, conversion and arbitrage demand utilizing the price difference between the main stock and ADR continuously occurred."
Kang explained: "SK Hynix is also likely to see a revaluation flow between the US ADR and Korean main stock in the future. This is because the scarcity value of Korean memory semiconductor stocks is expected to be greatly highlighted."
Kang analyzed: "Next year's memory supply shortage is likely to intensify more than this year. Next year's high bandwidth memory (HBM) prices will also rise more than 100% year-over-year considering the profitability gap with general-purpose DRAM. Currently, SK Hynix's stock price has sufficient upside potential, and the semiconductor rally has not ended yet."
FAQ
What target prices did brokerage firms set for SK Hynix on the 9th?
BNK Investment Securities set a target price of 1.85 million won with a 'HOLD' rating on the previous day, while KB Securities presented a target price of 4.2 million won on the 9th. The gap between the two targets exceeds 2 million won.
Why did BNK Investment Securities set a lower target price for SK Hynix?
BNK researcher Lee Min-hee stated that while AI server DRAM and eSSD remain in supply shortage, competitive infrastructure investment by hyperscalers is no longer valid. Lee projected that the recent stock price decline reflects demand slowdown and that earnings momentum will break after year-end.
What is KB Securities' basis for projecting 4.2 million won for SK Hynix?
KB researcher Kang Da-hyun cited the upcoming ADR listing effect, referencing TSMC's 1997 ADR listing case where premiums formed between ADR and main stock. Kang stated that next year's memory supply shortage will intensify and HBM prices will rise more than 100% year-over-year, concluding that SK Hynix's upside potential remains sufficient.
