TSX down after index extends retreat from all-time high
Investing.com - UBS raised its price target on SK Hynix (KS:000660) to KRW434,000 from KRW394,000 on Monday, maintaining a Buy rating as it forecasts stronger memory pricing and extended undersupply conditions.
The investment bank now expects DDR contract pricing to increase 5% quarter-over-quarter in Q4 2025 and projects that undersupply conditions will likely persist until Q4 2026, one quarter longer than previously anticipated.
UBS has increased its NAND flash contract average selling price assumptions for SK Hynix to 10% quarter-over-quarter growth in Q4 2025, up from its previous 5% forecast, and expects the upcycle to continue until Q3 2026.
The firm raised its 2026 operating profit forecast for SK Hynix by 11% to Won61 trillion, which stands 25% above current consensus estimates.
UBS noted that customers are negotiating long-term agreements beyond 2026, indicating an increasingly tight supply situation in the memory market.
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