Korean sell-side is polarized on memory names: several houses trimmed SK Hynix
forecasts and targets while others raised them citing sustained price strength.
BNK Investment & Securities downgraded SK Hynix to neutral and cut its target to
KRW1.85m, saying growth tied to hyperscale orders has faded and momentum is
slowing. Hyundai Motor Securities now sees SK Hynix Q2 revenue and operating
profit about 3.1% and 1.6% below prior estimates, citing weaker-than-expected
DRAM bit growth. Korea Investment Securities expects SK Hynix Q2 to miss market
expectations by roughly 8% as a higher HBM mix has restrained ASP upside, but
retains a buy rating. Mirae Asset cut SK Hynix Q2 operating profit by 12% to
KRW6.23 trln (from KRW7.07 trln) and keeps buys on Samsung (PT KRW550k) and SK
Hynix (PT KRW4.2m). Kiwoom cut Samsung’s target to KRW390k from KRW430k (-9.3%),
warning that chip-driven price increases for PCs and phones could curb future
memory procurement. On the bullish side, Morningstar raised targets to KRW330k
for Samsung and KRW2.4m for SK Hynix, citing DRAM/NAND prices running above
expectations and strong pricing power for Korean memory makers. KB Securities
raised SK Hynix’s target to KRW4.2m and projects operating profit of KRW290 trln
and KRW478 trln over the next two years. SK Securities expects semiconductor
supply tightness through 2027 and says demand remains robust, arguing slower
price gains do not imply a cyclical collapse. Bernstein maintains outperform
ratings on both Samsung and SK Hynix and remains constructive on semiconductors
and the earnings-upgrade cycle.
