“SK hynix to hit 3.2 million won”—target price raised by another 100,000 won; “Hyundai Motor initially at 400,000 won if robot value is factored in” [Stocktopia]

[Financial News] Here is a roundup of reports from major securities firms on the morning of October 12.
SK hynix is expected to post a surprise third-quarter result, exceeding market expectations as shipments and selling prices recover rapidly.
Hyundai Motor’s target price was lowered as production disruptions caused by a strike led to reduced earnings expectations. LG Energy Solution, meanwhile, was credited with strong results even excluding one-off gains, and analysts said large-scale energy storage system (ESS) orders in the fourth quarter could lift its share price.
◆ SK hynix (000660)― Meritz Securities / Researcher Kim Seon-woo
- Target price: 3.2 million won (raised 3.2%, from 3.1 million won) | Previous day’s close: 1,681,000 won
- Rating: Buy (maintained)
Meritz Securities raised its target price for SK hynix to 3.2 million won, saying the company would exceed market expectations in the third quarter. Market expectations have been lowered amid a stronger won and slower earnings improvement in the first half than at rivals. However, the firm believes shipments and selling prices will recover dynamically, driving a faster earnings improvement than at competitors.
Researcher Kim Seon-woo projected that SK hynix’s third-quarter operating profit would “rise 32% from the previous quarter to 80.1 trillion won, exceeding market expectations.” On high-bandwidth memory (HBM), Kim stressed that “although its HBM sales mix—the highest in the industry—had held back selling-price growth, the full-scale supply of HBM4 is now beginning, bringing a full contribution to earnings,” adding that “a memory supply shortage in 2027 is clear.”
Analysts say the factors that held back earnings improvement in the first half compared with rivals are now reversing. They also cited the review of existing contracts with a key mobile customer as part of discussions on a long-term supply agreement (LTA), with terms shifting in suppliers’ favor.※ High Bandwidth Memory (HBM)This is a high-performance memory semiconductor that stacks multiple layers of DRAM vertically and connects them using through-silicon vias (TSVs), greatly increasing data-processing speed. It is used in artificial intelligence (AI) accelerators that handle large volumes of computation, and HBM4 is the sixth-generation product.※ Long-Term Agreement (LTA)An agreement in which a semiconductor supplier and its customer set in advance the supply volumes and pricing terms for several years. Such agreements are often concluded on terms favorable to suppliers during periods of supply shortages and are seen as helping stabilize earnings.
◆ Hyundai Motor (005380)― Shinhan Investment Corp. / Researcher Park Gwang-rae
- Target price: 630,000 won (cut 19.2%, from 780,000 won) | Previous day’s close: 324,500 won
- Rating: Buy (maintained)
Shinhan Investment Corp. lowered its earnings estimates for Hyundai Motor and cut its target price to 630,000 won. It expects third-quarter operating profit to fall short of market expectations as sales volume declines 11.5% year over year. The analysis cited increased fixed-cost pressure amid a production shortfall of 50,000–55,000 vehicles due to the strike, along with falling sales in South Korea, North America and Europe.
Researcher Park Gwang-rae said, “If earnings growth in 2027 and some recognition of the value of new businesses such as robotics and autonomous driving materialize, the stock could rebound quickly to the 400,000-won range.” Conversely, Park forecast that the share price would remain range-bound if earnings improvement were delayed and the value of the robotics business failed to gain recognition.
This means that for the share price to rebound, next year’s earnings growth must be accompanied by the value of new businesses such as robotics and autonomous driving beginning to be reflected in the stock. Sales are expected to recover in the fourth quarter as domestic production returns to normal and shipments of the new Avante and Tucson increase. However, the improvement in earnings is expected to lag the recovery in volumes, as pressure from U.S. electric-vehicle incentives, exchange rates and warranty expenses continues.
◆ LG Energy Solution (373220)― iM Securities / Researcher Jeong Won-seok
- Target price: 550,000 won (maintained) | Previous day’s close: 401,000 won
- Rating: Buy (maintained)
iM Securities maintained its 550,000-won target price for LG Energy Solution, saying the company posted results above market expectations in the third quarter even excluding one-off gains.
The firm said operating profit exceeded the market forecast of 321.7 billion won even after excluding around 320 billion won in items including compensation related to the termination of its Canadian joint venture with Stellantis. The improvement was led by the ESS business, which shipped in a single batch volumes that had been delayed from the first half.
Researcher Jeong Won-seok said the U.S. ESS market “is growing rapidly, fueled by the expansion of renewable energy and rising power demand from AI data centers.” He expects large-scale new ESS orders to be concentrated in the fourth quarter and forecast that confirmed order wins would likely provide a catalyst for the share price.
Of this year’s ESS order target of around 90 GWh, only about 30 GWh has been confirmed, prompting concerns about whether the target will be met. Analysts, however, expect a year-end surge in orders to allay those concerns.※ Energy Storage System (ESS)An ESS stores generated electricity in batteries and supplies it when needed. It is used to help compensate for variable output from renewable sources such as solar and wind power, and demand has recently grown for ESS to help stabilize power supplies to AI data centers.

[email protected] Seong Min-seo Reporter