[Edaily Reporter Kwon Oh Seok ] IBK Investment & Securities announced on the 29th that it is maintaining its “Buy” rating on SK hynix(000660)but lowering its target price from 4 million won to 3.2 million won.

Kim Un-ho, an analyst at IBK Investment & Securities, explained, “We expect the memory market to continue growing in 2026, driven primarily by artificial intelligence (AI) servers, and we believe the stock is undervalued relative to its earnings.” He added, “We believe the sharp decline in the stock price in 2026 was an excessive reaction given the industry conditions and fundamentals.”
The previous day, SK hynix reported third-quarter revenue of 104.615 trillion won, a 31.9% increase from the second quarter. This figure exceeded the company’s previous forecast. Operating profit was 83.3 trillion won, a 37.6% increase from the second quarter. He elaborated, “While the volume of DRAM and NAND-related data was similar to the previous forecast, the increase in prices was higher than expected.”
Nevertheless, regarding the reason for lowering the target price, Analyst Kim emphasized, “This was not due to concerns about the memory market’s business conditions, but rather a consideration of the discrepancy between the current stock price and its intrinsic value.”
He noted, “Until now, the market had been more strongly driven by the tendency to preemptively reflect uncertainty about the distant future rather than anxiety over strong earnings; however, the stock price has been on an upward trend since hitting 1.19 million won. It even rose by more than 10% on October 28, the day the earnings were announced,” attributing this to “better-than-expected earnings and positive sentiment in the U.S. semiconductor market.”
He further added, “We expect the stock to enter a phase where it becomes less sensitive to negative news. The oversold stock price and valuation will serve as a support, and we anticipate that earnings from Big Tech companies—including the upcoming initial public offering (IPO) of Anthropic—will sufficiently offset market concerns. Additionally, ongoing share buybacks are expected to alleviate supply-and-demand imbalances.”