[Edaily Reporter Kim Kyung-eun ] Following SK hynix(000660)’s second-quarter earnings announcement, securities firms have been successively lowering their target stock prices. With the stock price having fallen more than 50% from its peak, they are adjusting their expectations to reflect valuation concerns (the level of the stock price relative to earnings). However, most firms maintained a “Buy” rating, noting that the structural growth trend of the artificial intelligence (AI) memory market remains intact.

According to financial information provider FnGuide Inc. on the 30th, six out of 14 securities firms that published reports that day lowered their target prices for SK hynix. The previous day (the 29th), two firms—MIRAE ASSET SECURITIES and BNK Investment & Securities—had already lowered their target prices from 4.2 million won to 2.8 million won and from 1.85 million won to 1.48 million won, respectively.

This marks a shift from the trend earlier this year, when target prices for SK hynix had been consistently raised. This is interpreted as the result of an increasing number of securities firms adjusting their expectations to reflect valuation concerns stemming from the recent sharp drop in the stock price.

SK hynix closed at 1,322,000 won, down 79,000 won (5.64%) from the previous trading day, marking its third consecutive trading day of declines. Compared to its all-time high of 2,987,000 won on the 25th of last month, the stock has plummeted 55.7% in just over a month.

Shinhan Investment Securities stated, “This reflects a sector-wide valuation adjustment,” and significantly lowered its target price for SK hynix from 4.2 million won to 2.7 million won. KIWOOM Securities also lowered its target price from 2.6 million won to 2.2 million won, noting, “This reflects adjustments to earnings forecasts for mainstream memory.”

NH INVESTMENT & SECURITIES also lowered its target price from 4.1 million won to 3.4 million won, while DaishinSecurities lowered its target from 3.9 million won to 3.2 million won. HANWHA INVESTMENT & SECURITIES lowered its target from 4.3 million won to 3.15 million won, and SamsungSecurities lowered its target from 3.5 million won to 3 million won.

Amid this, some securities firms raised their target prices. On the same day, Korea Investment & Securities raised its target price by 24% from 3.8 million won to 4.7 million won, citing that rising memory prices would continue to drive earnings in the third quarter. Compared to BNK Investment & Securities, which set the lowest target price (1.48 million won), the gap has widened to more than three times. This is interpreted as a sign that future outlooks are diverging sharply amid heightened volatility caused by the sharp drop in stock prices.

Despite the downward revisions to target prices, most analysts maintained a “Buy” rating. This is based on the assessment that the industry fundamentals remain sound, as demand for AI memory—centered on High-Bandwidth Memory (HBM)—is likely to continue over the medium to long term, and the pace of supply expansion remains limited.

The fact that second-quarter earnings fell short of market expectations was also cited as a factor raising expectations for an improvement in third-quarter earnings. The shortfall is attributed not to a slowdown in demand but to a delay in shipment timing; consequently, the market anticipates that a base effect will be reflected in the third quarter.

Park Yu-ak, an analyst at KIWOOM Securities, stated, “Factors that had previously caused market concern—such as valuation pressures, worries over AI capital expenditures in North America, and the IPO of China’s Changxin Memory (CXMT)—have already been largely factored into the stock price.” He added, “Considering the growth potential of HBM earnings in 2027–2028, the current stock price is in a sufficiently attractive range.”