World funding financial institution UBS has considerably raised SK Hynix’s goal worth from 853,000 received to 1,000,000 received. The financial institution offered the best determine amongst home and worldwide securities corporations, stating that SK Hynix’s working revenue will exceed 150 trillion received this 12 months.
In line with the monetary funding trade on Jan. 13, UBS introduced this by means of a report titled “Important revenue enhance potential with goal worth of 1 million received (PT to Won1m)” concerning SK Hynix. Notably, UBS offered this as a “Key Name” throughout the group, indicating strategic significance past a easy funding opinion.
UBS expects SK hynix’s fourth quarter DRAM working margin to achieve 82% this 12 months, considerably surpassing the earlier file excessive of 65% within the third quarter of 2018. Whereas excessive bandwidth reminiscence (HBM) has acquired consideration, general-purpose reminiscence might turn out to be a key revenue driver in 2026-2027. The financial institution anticipates that DDR contract worth will increase might proceed by means of the primary quarter of subsequent 12 months, and NAND worth will increase might persist by means of the third quarter of this 12 months.
SK Hynix’s working revenue forecast for this 12 months is 150.2 trillion received, representing a 211% upward revision from earlier estimates. That is 52% larger than the market consensus of 99 trillion received. This surpasses the latest 148 trillion received offered by Morgan Stanley, making it essentially the most optimistic forecast amongst home and worldwide securities corporations. Free money movement (FCF) can also be anticipated to extend considerably to 75 trillion received this 12 months and 98 trillion received subsequent 12 months.
UBS acknowledged, “The reminiscence semiconductor trade is in an ‘unprecedented upcycle’” and “SK Hynix’s inventory worth must be revalued to mirror basic modifications.”
UBS additionally raised Samsung Electronics’ goal worth from 154,000 received to 172,000 received. The financial institution elevated Samsung Electronics’ working revenue forecast for this 12 months from 135 trillion received to 171 trillion received. That is 32% above the market consensus of 130 trillion received.
The evaluation is that Samsung Electronics’ inventory worth might proceed to rise resulting from robust revenue forecast upgrades, market revaluation of the reminiscence cycle length, and long-term profitability enhancements.
