BNK Investment & Securities cut its second-half earnings forecast for SK hynix, while indicating that it would maintain its Hold rating and target price. The reasons cited were slowing growth in DRAM ASPs, the stronger Korean won and intensifying competition to increase production.
BNK Investment & Securities cut its second-half earnings forecast for SK hynix. In line with the revision, the brokerage indicated that it would maintain its Hold rating on the company and its current target price.
The sluggish growth in the average selling price (ASP) of DRAM was cited as a factor behind the revision. The impact of the stronger Korean won and intensifying competition to increase production were also seen as weighing on the earnings outlook. This has increased caution regarding the growth outlook for the second half.
Market participants are watching how much SK hynix can restore profitability amid the competitive environment. The report was based on CHOSUNBIZ, and the article body did not provide specific figures.