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Investing.com - Citi has downgraded SK Telecom (NYSE:SKM) (017670:KS) from Neutral to Sell and lowered its price target to KRW48,000.00 from KRW58,000.00.
The downgrade follows what Citi describes as "stricter-than-expected" government orders imposed on SK Telecom after a recent data breach incident.
Among these government measures is a requirement for SK Telecom to waive penalty fees for customers who choose to leave the service, which could potentially increase customer churn rates.
Citi analyst Heejin Lim cited concerns about "downside risk in its core earnings stability" expected in the second half of 2025 as a key factor behind the rating change.
The investment firm also warned of "potentially higher fines and lower shareholder return" that could further weaken investor sentiment toward the South Korean telecommunications company.
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