Hana Securities raises SK Hynix target price to 3.6 million won, citing HBM pricing upside

Hana Securities raised its target price for SK Hynix from 2.75 million won ($1,790) to 3.6 million won, while maintaining a "buy" rating on the stock.

Kim Rok-ho, an analyst at Hana Securities, said there is a strong likelihood that HBM price assumptions will be revised upward in earnings estimates for next year, beyond conventional DRAM, in the second half of this year.

"Next year's HBM price negotiations appear to be underway, and given that conventional DRAM prices have risen roughly fourfold over the past year, it is reasonable to expect that will be partially factored in," Kim said. He added that as HBM4 establishes itself as the flagship product and drives up the blended average selling price, a fresh round of HBM4-centered pricing would contribute to upward earnings revisions next year.

Hana Securities also raised its operating profit forecasts for SK Hynix for this year and next to 294 trillion won and 435 trillion won, respectively — up 8 percent and 18 percent from its previous estimates.

However, Kim noted that those figures do not yet reflect HBM price increases projected for 2027, meaning further upward revisions would be needed once the pricing outlook for that year becomes clearer.

Kim said the schedule for SK Hynix's American depositary receipt listing has been confirmed, and that Micron's earnings release provided concrete details on long-term supply agreements. "Earnings visibility for long-term supply contracts is very high, just as it is for HBM, which justifies applying a premium multiple over conventional memory," he said. "In a phase where both earnings and multiple expansion remain on the table, an overweight strategy should prove effective."

On Thursday, Mirae Asset Securities raised its target price for SK Hynix from 3.8 million won to 4.2 million won, also maintaining a "buy" rating.

Kim Young-geon, an analyst at the firm, said it kept its 2026 earnings forecast unchanged but raised its 2027 operating profit estimate to reflect an improved HBM price outlook.

"We revised our 2027 HBM price growth forecast upward from 25.3 percent to 43.7 percent," Kim said, adding that the firm lifted its 2027 operating profit estimate by 3.3 percent to 449 trillion won.

On SK Hynix's disclosure of plans to issue ADRs worth up to 45 trillion won, Kim said the firm anticipates the company could be added to the Philadelphia Semiconductor Index, known as the SOX, after the listing. "Based on the offering price, the market capitalization of $30 billion would rank 25th within the SOX index," he said. "With 179 million shares to be listed at a 1-to-0.1 issuance ratio, the trading volume requirement should be met without difficulty. We expect inclusion at the regular September rebalancing next year, which would draw inflows from global SOX index-tracking funds."

SK Hynix disclosed on June 24 that it is targeting a Nasdaq ADR listing and the start of trading on July 10 local time.

To that end, SK Hynix approved through its board the issuance of new shares worth 45.45 trillion won.

The company had previously announced a goal of securing more than 100 trillion won in net cash.