A $250 target accompanied Wolfe Research's reiterated Outperform rating for SK hynix on Oct. 28, as it cited demand for memory used in artificial intelligence and separately estimated room for repurchases.
The firm pointed to high-bandwidth memory (HBM) used in AI infrastructure and said stronger HBM prices and greater memory output could add to the case. In a separate calculation, Wolfe said projected free cash flow might finance a two-year repurchase program equal to 28% of SK hynix's shares, if the company follows its expected shareholder-return policy.
Within its bull-case scenario, Wolfe described SK hynix's shares as attractive at a valuation near 4.5 times earnings.
SK hynix said HBM4 deliveries increased during the July-September quarter and expects the product to exceed HBM3E in shipment volume and revenue in the fourth quarter. It also said customer agreements cover more than half of its total production capacity for 2027 and 2028, as EconoTimes previously reported in its coverage of the company's third-quarter results.
