[Click eStock] "NH Investment & Securities Raises SK Hynix Target Price to 170,000 Won"

NH Investment & Securities on the 5th raised the target price for SK Hynix from 158,000 KRW to 170,000 KRW, anticipating improved earnings through price increases. The buy rating was maintained.

Ryu Young-ho, a researcher at NH Investment & Securities, stated, "The target price was calculated by applying a PBR of 2.0 times to the 2024 BPS," adding, "Although there are concerns about valuation, if the company accelerates price increases for general memory and leverages its technological competitiveness in high value-added products such as DDR5 and HBM, it can secure additional momentum for stock price growth."

Researcher Ryu explained, "In the third quarter, the DRAM segment achieved an early turnaround to profitability, and although the reduction in losses in the NAND segment was disappointing compared to market expectations, supply adjustments and price increases are continuing to reduce losses in the fourth quarter."

He also judged that the price increase effect on products is driving earnings improvement. He viewed that the company is making efforts to improve performance by flexibly supplying products in response to price hikes.

However, he conveyed that since suppliers are still maintaining a conservative stance, the recovery in operating rates is unlikely to cause a sharp price decline, which is a concern in the market. Furthermore, he added that rather than an overall increase in CAPA, investments are focused on high value-added products, so a decrease in CAPA due to line conversions is expected to be greater than the increase in production volume.

This content was produced with the assistance of AI translation services.