Needham has increased its price target for SK Hynix to $220 from $200, maintaining a Buy rating on the South Korean memory chipmaker. The upgrade follows the company’s board approval last week for a ₩40 trillion share buyback program, equivalent to roughly 24.07 million shares or 3.3% of total issued shares.
The analyst also raised its cumulative shareholder return target for 2025–2027 from within 50% of cumulative free cash flow to over 50%, citing the buyback initiative. Needham projects nearly ₩500 trillion in cumulative free cash flow for the period and expects share repurchases and dividends to total nearly ₩250 trillion by the end of 2027.
The new $220 price target is based on a roughly 6x price-to-earnings multiple applied to the firm’s calendar year 2028 non-GAAP earnings per share estimate. SK Hynix currently trades at a P/E ratio of 7.39.
Other analysts have also weighed in on the stock. Barclays reiterated an Overweight rating with a $300 price target, while Goldman Sachs maintained a Buy rating. Rosenblatt Securities initiated coverage with a Buy rating and a $320 price target, and Needham had previously initiated coverage with a $200 target.
