Recently listed U.S. shares of SK Hynix, a South Korean chipmaker, rose 5% after six brokerages started coverage with bullish ratings, citing its dominance in the booming AI memory market and access to a broader global investor base.
Brokerage Ratings
The American Depositary Receipts of SK Hynix were last up at $150.08 on Tuesday. However, they are trading 16% below their July 10 listing price due to a recent pullback in semiconductor stocks.
At least six brokerages, including BofA Global Research, started coverage on SK Hynix with a “buy”-equivalent rating. Rosenblatt Securities set the highest price target on the stock at $320.
Bank of America was the underwriter for SK Hynix’s U.S. secondary offering, along with Citigroup, Goldman Sachs and J.P. Morgan.
Analysts at William Blair said, “We believe the U.S. listing provides an opportunity for SKHY shares to re-rate closer to its U.S.-based rival (Micron), which should compound with a more structural re-rating of shares driven by longer-term visibility and strong tie-in to AI and data center end markets.”
However, the positive reception was in contrast to the company’s latest earnings report, which came a few days after the U.S. listing. SK Hynix posted a record quarterly profit but fell short of analysts’ forecasts due to delays in shipments of advanced memory products, raising concerns about the pace of AI-related spending.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
