/A%20corporate%20sign%20for%20SK%20Hynix%20by%20Tada%20Images%20via%20Adobe%20Stock.jpeg)
SK Hynix (SKHY) shares soared roughly 8% on Tuesday as several Wall Street analysts issued bullish notes in favor of the South Korean memory giant that was recently listed in the U.S. The company’s 14-day relative strength index (RSI) sits in the mid-40s, indicating it remains miles below the overbought territory that often triggers profit-taking.
At about $154, SK Hynix stock is trading nearly 10% below the price at which it opened on Nasdaq on July 10. But Wall Street firms believe the story moving forward will be drastically different.
Bank of America Rates SK Hynix Stock at ‘Buy’
On Aug. 4, analysts at the Bank of America Securities resumed coverage on SKHY shares with a “Buy” rating and a bullish $250 price target.
Analyst Simon Woo cited dominant position in the HBM market, multi-year orders from U.S. giants, and stable average prices (ASPs) through 2028 for his bullish view.
Needham Initiates SKHY Shares With a ‘Buy’ Rating
While not as bullish as BofA, Needham analysts led by Neil Young also expect SK Hynix shares to hit $200 over the next 12 months.
Young expects blended DRAM prices to keep rising into next year as tight capacity meets soaring AI infrastructure demand. Other than HBM leadership, he cited the firm’s strong standing in SSDs for the constructive view.
Wedbush Recommends Buying SK Hynix
Wedbush assigned an “Outperform” rating to SKHY, arguing that current market dynamics are smoothing out memory’s historical cyclicality.
Analyst Matt Bryson believes severe supply shortfalls, extended buildout timelines, and solid long-term agreements will lengthen the period of robust cash flows. Plus, SK Hynix’s valuation discount relative to U.S. peers presents a prime buying opportunity.
RBC Capital’s View on SKHY
RBC also initiated coverage with an “Outperform” rating and a $200 price target on Tuesday. Analyst Srini Pajjuri projects SK Hynix will maintain its ~55% HBM market share through 2027.
Driven by next-gen HBM4E sampling with TSMC base dies and expected HBM contract price increase of over 50% in 2027, the company remains well-buffered against memory price swings, he added.
Cantor Fitzgerald Sees Upside in SK Hynix to $300
Cantor initiated coverage with a Street-high $300 target, which indicates potential upside of nearly 100% in SK Hynix shares.
Analyst C.J. Muse anticipates DRAM and NAND demand outstripping industry supply through at least CY29 as physical and generative artificial intelligence expand.
While near-term earnings bumps may briefly pause multiple expansion versus Micron (MU), he foresees sustained growth in SKHY’s cash flow and margins over the long term.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
