Morningstar says SK Hynix's ADR valuation looks reasonable given long-term
cyclical risk and maintains a $160 fair value. Analyst Jing Jie Yu says the
memory-chip maker's earnings trajectory is 'extremely hard to predict' and
expects continued extreme volatility in the ADR and Korean-listed shares. He
notes unprecedented retail participation and margin-trading levels are
amplifying price swings, and that limited trading history makes ADR spreads
uncertain, so short-term price discovery is likely; Morningstar keeps a 'very
high' uncertainty rating.
