No Respite Seen for Korean Chip Giants as Analysts Slash Targets
- Analysts cut share price targets at both Samsung and SK Hynix
- Samsung slumped 23% this year, while SK Hynix dropped 19%
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The world’s two largest memory-chip makers are wrapping up a brutal year with yet more damming news as analysts slash further their earnings prospects and price estimates.
South Korea’s NH Investment & Securities reduced on Monday its target on SK Hynix Inc. by 15 percent to 85,000 won ($75.16), citing a worse-than-expected decline in prices of dynamic random-access memory, or DRAM. The brokerage sees first-quarter operating profit dropping 21 percent from a year earlier on weak demand and seasonal factors. Eugene Investment also lowered its price target by 15 percent, noting that earnings momentum will be weak until the first half of next year.