[Edaily Reporter kyoungeun kim ] Over the past month, domestic securities firms have repeatedly lowered their target prices, far outpacing any upward revisions. With valuation pressures across the market intensifying and concerns mounting over downward revisions to this year’s net profit forecasts, the trend of lowering target prices appears to be spreading.

According to financial information provider FnGuide Inc. on the 18th, over the past three months (May 17–August 17), there were 1,407 reports (covering 301 stocks) that lowered target prices, surpassing the 1,204 reports (covering 280 stocks) that raised them.
Narrowing the timeframe to the past month (July 17–August 17), there were 923 downward revisions (covering 220 stocks) compared to 391 upward revisions (covering 130 stocks), indicating that downward revisions were more than twice as frequent, suggesting a concentrated trend of downward revisions over the past month.
The number of stocks with downgrades was also higher than the number with upgrades, suggesting that the trend of lowering target prices is not limited to a few stocks but has spread across the market as a whole.
By sector, downward revisions over the past month were notably concentrated in electronic equipment and devices (79 reports), media (69 reports), pharmaceuticals (58 reports), chemicals (50 reports), and construction (47 reports).
By individual stock, downward revisions were concentrated on JYP Entertainment Corporation(035900)(20 cases), CLASSYS Inc.(214150)(16 cases), Netmarble Corporation(251270) andGS Engineering & Construction Corp(006360)(14 cases each), HyundaiEngineering&Construction(000720) andHyundaiMotor(005380)(13 cases each), and Green Cross Corporation(006280),MIRAE ASSET SECURITIES(006800),KIWOOM Securities(039490),HYUNDAIDEPARTMENTSTORECO.,LTD(069960), andHD HYUNDAI ELECTRIC(267260)(12 cases each).
Among the large-cap stocks with the highest market capitalization— SamsungElectronics(005930), and SK hynix(000660)—downward revisions have been particularly pronounced over the past month. In the case of SamsungElectronics, while upward revisions (32 reports) overwhelmingly outnumbered downward revisions (6 reports) over the past three months, the trend completely reversed when narrowed to the past month, with downward revisions increasing to 5 and upward revisions totaling only 1.
SK hynix also showed a dominance of upward revisions over the past three months, with 32 upward revisions and 9 downward revisions; however, over the past month, the trend reversed, with 9 downward revisions and only 3 upward revisions. Notably, all 9 downward revision reports for SK hynix issued over the past three months were concentrated within the last month, indicating a clear reversal in sentiment recently.
Market experts cite two main reasons for the recent spread of target price downgrades. One is valuation pressure. Despite improved earnings, the recent decline in stock prices has generally lowered the overall price-to-earnings multiples for the sector.
In addition, the possibility of downward revisions to net income forecasts for the second half of this year is cited as one of the factors dampening expectations. Reflecting the slowing momentum of semiconductor price increases, the decline in the won-dollar exchange rate, and the burden of one-time costs and performance-based bonuses in the second half, securities firms believe expectations need to be lowered.
This is particularly because the value of the Kioxia stake—which boosted second-quarter net income—is likely to turn into an impairment loss in the third quarter. BNK Investment & Securities estimated that, based on Kioxia’s current stock price and considering the impact on SK hynix, SKSQUARE, and SK, the third-quarter KOSPI 200 controlling shareholder net income forecast should be lowered by approximately 54 trillion won.
One-time expenses in the fourth quarter are also a variable. From 2020 to 2024, the average fourth-quarter one-time expenses for KOSPI 200 companies were 22.9 trillion won. This year, performance-based bonuses are likely to increase, particularly in sectors where earnings have improved—including SamsungElectronics and SK hynix, as well as defense, shipbuilding, machinery, and finance.
The steep upward trend in semiconductor earnings is also expected to level off. While the year-over-year revenue growth rate for the KOSPI manufacturing sector reached 37.4% in the second quarter—the highest level since the adoption of K-IFRS (Korean International Financial Reporting Standards)—it is expected to stagnate in the third quarter due to a decline in the won-dollar exchange rate and a slowdown in the rate of increase in memory prices. The year-over-year growth rate of DRAM and NAND export prices has also been slowing since peaking in June.
The market currently forecasts this year’s KOSPI 200 controlling shareholders’ net income at 783.7 trillion won. While the first half of the year recorded 377.3 trillion won, this figure drops to 298.8 trillion won when excluding the valuation gain on the Kioxia investment asset.
Kim Seong-no, an analyst at BNK Investment & Securities, said, “Considering the possibility of valuation losses on the Kioxia investment and one-time costs in the fourth quarter, this year’s KOSPI 200 net income attributable to controlling shareholders needs to be revised downward by 60 trillion to 100 trillion won from the current forecast.”