Bullish
SK Hynix Target Price Cut 17% to 340k Won on LTA Caution
2026-07-30 17:56:06
NH Investment & Securities lowers SK Hynix target to 340,000 KRW, citing LTA validation delays. Q2 sales hit 7.93T KRW, up 256% YoY, while Q3 profits projected at 7.62T KRW.
Woofun AI reports that NH Investment & Securities has lowered its target price for SK Hynix from 4.1 million KRW to 3.4 million KRW, though it retains a "Buy" rating. The adjustment reflects caution regarding the HBM4 shipment schedule and the market's slow validation of Long-Term Agreement (LTA) effectiveness, leading to slightly reduced earnings forecasts for 2027-2028.
SK Hynix recorded Q2 2026 sales of 7.93 trillion KRW, a 256.8% year-on-year increase, with operating profit rising 557.2% to 6.05 trillion KRW. For Q3 2026, operating profit is projected at 7.62 trillion KRW, driven by expected ASP increases of 16.5% for DRAM and 7.0% for NAND.
WOOFUN AI
Impact Assessment · Quick Read
The price cut highlights market skepticism toward LTAs as a profit stabilizer, despite strong fundamental growth. While Q2 results exceeded expectations, the delayed consensus on LTA efficacy may cap near-term valuation multiples. Clear capital allocation guidance could serve as a critical catalyst for re-rating, offsetting current sentiment headwinds.
Generated by WOOFUN AI · For reference only, not investment advice
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