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[Alpha Biz= Reporter Kim Minyoung] Kiwoom Securities Upgrades SK Hynix Investment Rating to 'Buy,' Calling It a Buying Opportunity
On the 6th, Kiwoom Securities upgraded its investment rating for SK Hynix to 'Buy,' stating that the recent sharp decline in the company's stock price represents a buying opportunity.
Researcher Park Yoo-ak noted in a report released on this day that the recent drop in SK Hynix's stock price to 156,100 KRW as of the previous day's closing price presents a buying opportunity.
Kiwoom Securities has historically maintained a conservative stance on SK Hynix. Since March, when SK Hynix's stock price experienced a steep rise, the firm has kept its investment rating at 'Market Perform,' which is effectively neutral.
Kiwoom Securities explained, "We have maintained a conservative investment rating, citing reasons such as stock price overshooting, concerns about a peak in AI semiconductor investment, and intensified competition in the high-bandwidth memory (HBM) industry. However, these concerns have been largely reflected in the recent sharp decline in stock price."
The firm added, "At this point, what we are focusing on is the possibility that the rapid deterioration in AI-related investment sentiment could lead to a downward adjustment in next year's capital expenditure (CAPEX) plans for DRAM companies, including SK Hynix. If confidence in HBM's high growth and expectations for a recovery in general DRAM demand turn into doubts, the burdensome CAPEX plans for DRAM could be lowered, and the DRAM supply-demand situation could become more robust than expected.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
