Barclays calls SK Hynix's buyback a "strong signal" and keeps an overweight
rating on SK Hynix ADR (SKHY.O) with a USD300 price target. Analyst Simon Coles
forecasts shareholder returns equal to about 15% of current market
capitalization over 2025-27. Barclays says strong cash flow should allow the
company to raise shareholder returns without cutting capacity expansion, and
raises its 2027 dividend forecasts to KRW2,500 per quarter and KRW10,000
year-end. Assuming a KRW200 trillion buyback in 2027, Barclays estimates roughly
51% of cumulative free cash flow for 2025-27 would be returned to shareholders;
the split between dividends and buybacks remains a variable, and Barclays views
buybacks as preferable when the stock is undervalued given semiconductor
earnings volatility.
