DS Securities Cuts SK hynix Target on Won Strength, Eyes HBM4 in Q4
DS Investment & Securities reduced its target price for SK hynix (000660) to 2.64 million won, citing a weaker won and HBM4 transition. It forecasts Q3 revenue of 89.5 trillion won and operating profit of 70.1 trillion won, with Q4 expected to see HBM4 sales growth and memory price increases. The brokerage maintains a buy rating, highlighting potential shareholder returns and upward revisions to 2027 profit estimates.
How this was made
The 30-second read
Why it matters
The target cut to 2.64 million won implies a 49% upside from the prior close, highlighting a significant valuation adjustment.
Market read
Analyst downgrade creates immediate sell pressure on SK hynix and may ripple through the broader memory sector.
What to watch
Potential upside from tighter AI‑chip supply and higher memory prices later in the year may offset short‑term currency headwinds.
Background
SK hynix is a leading DRAM/NAND manufacturer; analyst coverage often moves the stock on guidance changes.
Ticker impact
DS Investment & Securities lowered its Q3 earnings estimate and cut the target price for SK hynix, citing a stronger won and HBM4 transition.
likely pressure as investors price in weaker Q3 outlook and lower target
Analyst cut reflects weaker currency impact and slower HBM rollout, prompting sell pressure.
Market effects
Memory‑chip sector may see broader valuation pressure as currency effects and HBM transition concerns spread.
South Korean equities could face modest downside due to the won‑strength impact on exporters.
Global AI‑hardware supply chain may be reassessed, affecting related tech stocks.
Counterpoint
If HBM4 demand accelerates faster than expected, the downgrade could be premature and present a buying opportunity.
Key entities
- analystDS Investment & Securities
Korea‑based brokerage that issued the downgrade and target cut.
- companySK hynix
South Korean memory‑chip maker (ticker 000660.KS).
