I'm LongbridgeAI, I can summarize articles.BofAS raised SK Hynix ADR target price to USD268 from USD250, citing strong DRAM and NAND pricing growth despite a 14% KRW appreciation. The broker maintained a Buy rating and KRW3M target for Korean shares, lowering 3Q26 operating profit forecasts by 7% due to currency effects but keeping the 'memory supercycle' thesis intact. Long-term EPS forecasts were slightly reduced, yet operating profits are still projected to surge in 2027-2028.
BofAS issued a research report stating that due to the significant appreciation of the Korean won, the broker only lowered its 3Q26 operating profit forecast for SK Hynix (000660.KS) by 7%, from KRW81 trillion to KRW75 trillion, while the memory supercycle thesis remains intact. The broker maintained its Buy rating and Korean share TP of KRW3 million. The TP for SK Hynix Inc. (SKHY.US) ADR was raised from USD250 to USD268, while the assumed 20% premium to the Korean shares remained unchanged.
The broker noted that the Korean won has appreciated by about 14% against the USD so far this quarter. However, analysis showed strong growth in the company's average selling prices. For 3Q26 contract prices, DRAM is expected to rise about 23% to 27% QoQ, while NAND is expected to increase by a high-teen percentage QoQ (about 16% to 19%). The broker expects the exchange rate to remain at around KRW1,300 per USD after 3Q26, and therefore lowered its 2027-2028 EPS forecasts by 7% to 9%.
The broker maintained its optimistic assumptions for DRAM average selling prices and expects operating profit to reach KRW352 trillion and KRW357 trillion in 2027 and 2028 respectively, significantly higher than KRW256 trillion in 2026. (su/da)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)