Despite the strong performance of Samsung Electronics and SK Hynix, the stock market is lowering the..

Hynix 4.2 million won (2.8 million won)
Samsung Electronics also dropped to 370,000 won

사진 확대 Samjeonix [Reuters = Yonhap News]

Despite the strong performance of Samsung Electronics and SK Hynix, the stock market is lowering the target stock prices of both companies one after another. Until early this month, the goal was raised based on expectations for performance, but the mood reversed sharply as stock prices were subject to steep adjustments. Some criticize that only individual investors who have made investments believing in the rosy outlook on the stock market’s “jumping” target price will suffer a setback.

On the 29th, Mirae Asset Securities drastically lowered Samsung Electronics’ target price from 550,000 won to 370,000 won. This is the second target this month after Kiwoom Securities lowered Samsung Electronics’ target price from 430,000 won to 390,000 won on the 8th.

The lowering of the target price is the result of lowering the target multiple to reflect the adjustment caused by the recent drop in NAND contract prices. Earlier, it proposed a high target stock price on the assumption that valuation undervaluation would be resolved at the level of the global peer industry, but it is based on the judgment that the target price adjustment is inevitable due to the recent adjustment.

Kim Young-gun, a researcher at Mirae Asset Securities, explained, “Following the stock price adjustment following the drop in the NAND contract price, the issue of localization of Chinese exposure machines continued, but in the latter case, only the target multiple was lowered because the possibility of affecting the performance estimate by 2028 was limited.”

사진 확대

On the same day, Mirae Asset Securities also lowered SK Hynix’s target price from 4.2 million won to 2.8 million won. It is the first time in about a year and three months that SK Hynix’s target has been lowered at a domestic securities company since the end of April last year.

Mirae Asset Securities raised its target price of SK Hynix by 10% from 3.8 million won to 4.2 million won on the 25th of last month, just a month ago. It is a time when SK Hynix’s stock price exceeded KRW 2.9 million, forming a high point. However, Mirae Asset Securities cut its target price by more than 30 percent at a time as its stock price halved in a month and fell to around 1.4 million won.

A number of domestic securities companies, including NH Investment & Securities, KB Securities, and Daishin Securities, as well as Mirae Asset Securities, have proposed a high target price of more than KRW 3 million for SK Hynix until early this month.

On the same day, BNK Investment & Securities also lowered SK Hynix’s target price from 1.85 million won to 1.48 million won. BNK Investment & Securities has not offered a target price for more than two months after raising the target price of SK Hynix to 1.85 million won on May 12.

Lee Min-hee, a researcher at BNK Investment & Securities, said, “As the consumption economy worsens, NAND spot prices have been on the decline since the end of April, and there are growing doubts about the financing of artificial intelligence (AI) facility investment by hyperscalers. Among them, manufacturers are announcing large-scale new investments amid long-term demand optimism, raising concerns about oversupply in the future.”

On the other hand, there are still opinions that SK Hynix has entered a phase of excessive short-term fall. Researcher Kim Young-gun lowered the target price on the same day, but said, “Considering profit strength and financial stability, the recent decline in stock prices is excessive.”

Researcher Lee Min-hee explained, “SK Hynix is currently in a short-term oversold phase, but the manufacturers’ competitive expansion attitude is not expected to change easily, and the trend of slowing demand in the second half of the year is expected to continue, so the rebound in stock prices is also expected to be limited.”