April 27, 2024

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[THE INVESTOR] Concerns over deepening competition in DRAM market is excessive, said KB Investment and Securities on Aug. 7, maintaining a “buy” recommendation and 100,000 won (US$88.83) target price for SK hynix.

Its stock price has declined following target price adjustment of an investment bank, based on easing supply and demand imbalance of DRAM and price decline of NAND from increasing supply. This, however, is a repetition of what has been said before. Leading DRAM makers such as SK hynix and Samsung Electronics in particular will maintain their dominance while investment in facilities decline next year, said analyst Kim Dong-won. 

SK hynix shares have been fluctuating from growing concerns over the possibility of price decline, due to the hike in supply from Samsung next year. It will post record earnings in the third quarter as revenue will hike 38 percent on-year to 11.2 trillion won and operating profit by 64 percent to 6.1 trillion won, estimated the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)