Japan's global investment bank (IB) Nomura Securities raised its target price for SK hynix by 21% to 2.34 million won from 1.93 million won. It projected operating profit in the second quarter of this year would climb 79% from the previous quarter to 68 trillion won.
On the 24th, according to the financial investment industry, Nomura Securities said in a report, "Reflecting a better-than-expected earnings outlook, we are raising our operating profit (OP) forecasts for SK hynix for 2026 and 2027 by 9% and 4%, respectively."
It also projected SK hynix's operating profit in 2026 and 2027 at 280 trillion won and 379 trillion won, respectively. Those figures are up 492% and 36% from a year earlier, respectively.
Nomura Securities cited rising prices for DRAM and NAND. It analyzed that DRAM and NAND prices in the second quarter of this year would rise 51% and 65% quarter over quarter, respectively. For the full year, it expected DRAM and NAND price increases of 178% and 280%, respectively. Those are upward revisions from its previous forecasts of 166% and 206%.
Nomura Securities said, "Memory companies are discussing long-term agreements (LTA) with key customers under favorable terms on volume, price and deposits," adding, "If such contracts are concluded successfully and take root as a new business model for the memory industry, the high profitability of memory companies could be sustained over the mid to long term."
However, Nomura Securities noted that if the won strengthens against the dollar, SK hynix's revenue in won terms could decrease, weighing on earnings. It also explained that the share of fixed costs paid in won—such as salaries and bonuses—has grown, so the cost-saving effect from a weaker exchange rate could be limited.