SK Hynix Inc. received a bullish valuation upgrade from Needham on Monday, as the brokerage raised its 12-month price target to $220 from $200 while maintaining a buy rating.
The revision follows SK Hynix’s board approval last week of a ₩40 trillion ($29.4 billion) share buyback program, representing roughly 3.3% of its total outstanding shares. The program targets approximately 24.07 million ordinary shares, aligning with the company’s updated capital return strategy.
Needham’s new target reflects a price-to-earnings multiple of about 6x based on estimated non-GAAP earnings per share for 2028, adjusted for the reduced share count from buybacks. The brokerage also noted SK Hynix’s projected cumulative free cash flow of ₩500 trillion between 2025 and 2027, with over half earmarked for dividends and buybacks under the revised plan.
Barclays, which reiterated an overweight rating with a $300 target, expects SK Hynix to return roughly 15% of its market capitalization to shareholders while expanding capacity in the coming years. Goldman Sachs maintained its buy rating despite recent price declines, citing concerns over weakening memory prices and rising inventory levels.
Rosenblatt Securities initiated coverage with a buy rating and a $320 target, while Macquarie highlighted regional market shifts in ASEAN driven by artificial intelligence demand. SK Hynix’s current P/E ratio stands at 7.39.
