Wall Street financial firms have recently issued buy recommendations for SK Hynix's American Depositary Receipts (ADRs), citing that the growth potential in the artificial intelligence (AI) memory market and SK Hynix's technological competitiveness are not fully reflected in the current stock price.
According to Reuters on August 4, at least six financial institutions, including Bank of America (BofA), have begun analyzing SK Hynix ADRs and have expressed buy or overweight opinions.
BofA positively assessed the strong orders from major U.S. tech companies, the expansion of AI infrastructure investments, and SK Hynix's leading position in the high-bandwidth memory (HBM) market. Based on this, they forecast a long-term boom in the memory market and continued earnings growth.
Rosenblatt Securities set the highest target price among the newly analyzing firms at $320, which is 124% higher than the previous closing price of $142.72. Stifel set a target price of $240.
UBS also issued a buy recommendation with a target price of $204, noting that the memory supply shortage could persist until 2028, and that profitability, free cash flow, and shareholder return capabilities have significantly improved compared to previous assessments.
As Wall Street's optimistic outlook continues, SK Hynix ADRs closed at $154.38 on the Nasdaq, an increase of 8.2% from the previous trading day.
* This article has been translated by AI.
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