Chipie schreef op 22 september 2024 11:34:
Morgan Stanley double-downgrades SK Hynix on cloudy outlook beyond Q4
Shares of SK Hynix (KS:000660) dropped on Thursday following a double downgrade from Morgan Stanley, with analysts shifting their rating from Overweight to Underweight.
In a note, analysts remarked that "the sun is still shining" for the company at the moment. They predict 2024 will be another strong year for SK Hynix, driven by increasing DRAM prices heading into the fourth quarter, which should lead to "exceptional near-term earnings."
However, the outlook beyond the fourth quarter appears less favorable. While the long-term potential for DRAM, particularly due to AI-driven demand from data centers, is still promising, the firm noted that cyclical shortages are coming to an end.
“Looking past 4Q24, we see sustained risks to the top line and EPS as growth slows, pricing falls, and rising competition in high-bandwith memory (HBM) challenges sustainable long-term margins,” the analysts added.
In addition to downgrading the stock, Morgan Stanley also cut its price target for SK Hynix by more than half, lowering it from 260,000 to 120,000 Korean won.