"Wasn't It 4 Million Won for Samsung and 4.2 Million Won for Hynix?" ... Target Prices for Samsung Electronics and SK hynix Are Cut Across the Board

[Financial News] KIWOOM Securities Co., Ltd. lowered its target prices for Samsung Electronics and SK hynix, reflecting concerns over the semiconductor industry outlook and changes in earnings forecasts. Given that some recent reports in the financial investment industry had raised expectations for Samsung Electronics in the 400,000-won range and SK hynix at 4.2 million won, investor expectations are also appearing to come down.

According to the financial investment industry on the 11th, Park Yoo-ak, an analyst at KIWOOM Securities Co., Ltd., cut Samsung Electronics' target price from 390,000 won to 350,000 won the previous day. He also lowered SK hynix's target price from 2.2 million won to 2.1 million won, while maintaining a 'buy' rating on both stocks.

Until recently, expectations for semiconductor stocks had been high. In the financial investment industry, some reports had set Samsung Electronics' target price in the 400,000-won range or raised SK hynix's target price to as high as 4.2 million won.

Regarding this, Park explained that smartphone makers are becoming more conservative in their purchases because of the heavy burden of high memory prices. He also expected demand for memory used in laptops and PCs to be weaker than initially forecast at the start of the year.
He said, "Amid large-scale capacity expansions driven by long-term supply contracts, supply growth in 2027 will weigh on the commodity memory market."
He also cited intensifying competition with Chinese memory makers for market share as another concern.
Park said ChangXin Memory Technologies (CXMT) has entered the PC and server markets by promoting domestic equipment localization, while Yangtze Memory Technologies Corp (YMTC) is also expanding its share in the mobile and client SSD markets using Chinese-made equipment.
Despite the lower target price, Park kept Samsung Electronics as his top pick in the semiconductor sector.
He forecast that Samsung Electronics' High Bandwidth Memory shipments in 2027 will rise 109% from this year, while its blended average selling price will also increase 81%. Based on this, he expects Samsung Electronics to expand its share of the HBM market and reclaim the industry's No. 1 position.
On Samsung Electronics' stock price, he emphasized, "Samsung Electronics' stock has fallen as it reflected numerous concerns, but we expect a rebound based on HBM earnings growth."
SK hynix is also expected to see HBM earnings growth drive a short-term rebound in its stock price.
As of the previous day's close, Samsung Electronics was trading at 230,000 won and SK hynix at 1.42 million won.

[email protected] Han Seung-gon Reporter