"400,000 Won for SK hynix, but Only 1.85 Million Won for Me" BNK Issues a De Facto 'Sell' Call... E-Mart Cuts Target Price by 15% on Starbucks Headwinds [Stocktopia]

[Financial News] Here is a roundup of major brokerage reports as of the morning of July 10.
While most brokerages remain bullish on SK hynix, BNK Securities raised the possibility of a slowdown in future investment and issued what amounts to a sell view.
Kia was assessed as having entered a phase of improving profitability, supported by strong sales and favorable exchange-rate effects, even amid external headwinds such as the U.S.-Iran war. E-Mart, meanwhile, is expected to post second-quarter results below market expectations due to weak Starbucks sales and stagnation in its e-commerce business.
◆SK hynix (000660)― BNK Securities / Analyst Lee Min-hee
- Target price: 1.85 million won | Previous close: 2.186 million won
- Investment opinion: Hold
BNK Securities took a cautious view by setting a target price below the current share price, unlike the market consensus that places SK hynix's target price around 4 million won.
Analyst Lee Min-hee said, "Dram for AI servers and enterprise solid-state drives (eSSD) are still in a supply shortage, but the aggressive infrastructure investment by hyperscalers that generate orders is no longer sustainable," adding that "momentum is slowing." She interpreted this as a sign that a slowdown in investment by large AI data center operators could create a gap with future earnings expectations for semiconductor companies.
Lee also said, "The recent sharp drop in the stock price reflects weakening demand, and earnings momentum is expected to fade after year-end," and added, "Valuations are not cheap from next year onward." The analysis suggests that concerns over slower infrastructure investment could weigh on future earnings growth.※ HyperscalerThis refers to major IT companies that operate large-scale artificial intelligence (AI) data centers.
◆Kia (000270)― Eugene Investment & Securities / Analyst Lee Jae-yong
- Target price: 250,000 won (down 16.7% from 300,000 won) | Previous close: 144,800 won
- Investment opinion: Buy (maintained)
Eugene Investment & Securities forecast that Kia will deliver solid earnings thanks to improved product mix and currency effects, despite external cost pressures. However, it lowered the target price to reflect weaker valuations for peers such as Hyundai Motor.
Analyst Lee Jae-yong said, "Kia faced higher costs from supply disruptions to Asia and the Middle East caused by the U.S.-Iran war, as well as rising raw material prices, but it has entered a phase of improving profitability thanks to strong sales and the won-dollar exchange rate effect." He said this means the company is offsetting geopolitical risks and cost burdens with solid sales performance.
He also noted, "Due to high oil prices, demand for electric vehicles (EV) and hybrid vehicles (HEV) is expected to continue rising in the second half," and added, "Further profit improvement will be supported by mix gains from expanding market share in the United States and strong sales of recreational vehicle (RV) type HEVs." The analysis suggests that expanding sales of higher-value vehicles will help defend margins going forward.
◆E-Mart (139480)― Korea Investment & Securities Co., Ltd. / Analyst Kim Myung-joo
- Target price: 115,000 won (down 14.8% from 135,000 won) | Previous close: 79,600 won
- Investment opinion: Buy (maintained)
Korea Investment & Securities Co., Ltd. cut its target price for E-Mart, saying second-quarter results are likely to fall short of market expectations because of weak Starbucks sales and delays in profitability improvement at its online platform.
Analyst Kim Myung-joo explained, "The main factors are the weakness in SCK Company (Starbucks) and the online business," adding, "The stock's prolonged underperformance reflects Starbucks' marketing issues as well as the slow improvement in profitability at the online platform."
Still, he left room for a potential boost from competitors' store closures. Kim said, "It is difficult to predict what will happen with Homeplus, but the resulting benefits for E-Mart are likely to keep growing," and added, "The increase in births and the rebound in the fertility rate that have continued since last year are positive for E-Mart as a domestic retail company." The analysis suggests that market share gains from rival exits and a demographic rebound could provide medium- to long-term support.

sms@fnnews.com Sung Min-seo Reporter