BNK Investment Securities issued a research report on May 9th setting a target price of 185 million won for SK Hynix stocks with a 'hold' rating, a forecast now gaining renewed attention as SK Hynix shares fell into the 180 million won range. Analyst Lee Min-hee cited concerns that competitive infrastructure investments by hyperscalers providing AI server orders are no longer valid, signaling potential slowdown in AI infrastructure investment momentum. The report maintained the target price previously raised on May 12th, but with SK Hynix closing at 207.6 million won on May 8th, the market interpreted the unchanged target as effectively a 'sell' recommendation.
BNK Investment Securities Issues 185 Million Won Target Price with AI Slowdown Warning
According to the financial investment industry on the 14th, BNK Investment Securities presented an investment opinion of 'hold' and a target price of 185 million won for SK Hynix on May 9th. In the report, researcher Lee Min-hee stated that while DRAM and solid-state drives (eSSD) for AI servers remain in supply shortage, competitive infrastructure investments by hyperscalers providing orders are no longer effective, presenting a pessimistic outlook.
The report particularly shocked the market as it maintained the target price adjusted upward on May 12th unchanged, which was interpreted as a de facto 'sell' opinion given that SK Hynix's closing price on May 8th, the day before the report was written, was 207.6 million won.
Lee also raised concerns that supply oversupply could occur after this AI rally cycle due to the entry of Chinese companies. The researcher pointed out that valuation for next year onward is not cheap as earnings momentum weakens after year-end.
Brokerages Downgrade SK Hynix Q2 Earnings Forecasts
Reports suggesting SK Hynix's Q2 earnings will fall short of consensus have been emerging recently. Mirae Asset Securities downgraded its estimate for SK Hynix's Q2 operating profit this year from 70.7 trillion won to 62.3 trillion won, a 12% reduction, through a report on the 14th.
Hyundai Motor Securities also estimated SK Hynix's Q2 revenue and operating profit at 87.6 trillion won and 62.4 trillion won respectively, down 3.1% and 1.6% from previous forecasts.
FAQ
What target price did BNK Investment Securities set for SK Hynix stocks?
BNK Investment Securities set a target price of 185 million won for SK Hynix in a report issued on May 9th, maintaining a 'hold' rating. The target was kept unchanged from the price adjusted upward on May 12th.
Why did analysts express concerns about SK Hynix stocks?
Analyst Lee Min-hee cited that competitive infrastructure investments by hyperscalers are no longer effective, pointing to potential slowdown in AI infrastructure investment momentum. Concerns were also raised about possible supply oversupply after the AI rally cycle due to Chinese companies' entry.
How much did Mirae Asset Securities lower SK Hynix's Q2 earnings estimate?
Mirae Asset Securities downgraded SK Hynix's Q2 operating profit estimate from 70.7 trillion won to 62.3 trillion won on the 14th, representing a 12% reduction from the previous forecast.
