Shares of SK hynix listed in the United States have fallen more than 23% over the past month, but a foreign media report said some on Wall Street see upside of more than 200%.
According to U.S. business outlet Yahoo Finance on the 10th (local time), SK hynix (SKHY), listed on the Nasdaq, was trading at $129.66. It has fallen 23.29% over the past month, and 14.01% in the last week alone. The outlet said the Nasdaq sell-off that dragged down Asian semiconductor stocks had been the biggest blow. It added that some had pointed out that competition from China's CXMT is putting pressure on prices.
Third-quarter revenue was 104.6 trillion won, up 328% from a year earlier. The operating margin was 80%. However, a foreign exchange loss of 11.6 trillion won and an investment valuation loss of 22.9 trillion won were reflected. As a result, pretax profit fell 58.7% from the previous quarter, the outlet said. Some customers adjusted their HBM specifications. Management described this as evidence that "demand is actually overwhelming supply."
Kevin Cassidy, an analyst at Rosenblatt Securities, raised his target price from $320 to $400 after the third-quarter earnings release. That is the highest on Wall Street and implies upside of about 208%. The average target price among 14 analysts is $260.64, implying upside of about 101%. The consensus earnings per share (EPS) for fiscal 2027 rose to 42.2991 from 33.6243 90 days ago.
Rosenblatt cited the fact that long-term supply contracts account for more than 50% of total production capacity in 2027 and 2028. Management said DRAM and HBM volumes through 2029 are "effectively sold out." The current share price is about 3 times forward price-to-earnings ratio (PER). Rosenblatt assumed a re-rating to about 9 times. Management expects the supply shortage to continue through 2030. It judged the stock to be undervalued.
Over the same period, Micron fell 29.52% and Western Digital fell 27.2%. The outlet said SK hynix has the smallest consensus upside among its peers. It added, however, that its forward multiple is the lowest. SK hynix is down 22.81% year to date. Over the same period, the S&P 500 rose 9.99%.
The outlet analyzed that the bearish case could gain strength if AI capital spending slows or Chinese rivals put pressure on DRAM prices. It also pointed to the risk that massive capital spending in 2027 could lead to oversupply. "The 208% scenario requires everything to fall into place," the outlet said. It added, "Far fewer conditions are needed to reach the consensus target price."
* This article was written based on a Yahoo Finance report in the United States dated November 10 (local time).