LS Securities cuts SK hynix target 27.3%, raises Samsung Electronics target 12.5%

  • LS Securities raised Samsung Electronics’ target and cut SK hynix’s target, retaining SK hynix’s buy rating.
  • Samsung’s HBM4 shipment share reached about 35% in the second quarter, versus about 5% previously.
  • Bank of America said global DRAM revenue growth could exceed 80% in 2027.

LS Securities raised its target price for Samsung Electronics (005930) to 450,000 won from 400,000 won and cut SK hynix (000660) to 2.4 million won from 3.3 million won, while maintaining a buy rating on SK hynix. The brokerage cited Samsung’s expanding HBM4 shipments and improving yields, with HBM4 estimated to represent about 35% of its HBM shipments in the second quarter versus about 5% in the first. It lowered SK hynix’s projected HBM operating margin next year to about 60% from 80%, reflecting the risk that Samsung’s gains will encourage customers to diversify suppliers. The reassessment comes even as the memory outlook remains strong: Bank of America said global DRAM revenue growth could exceed 80% in 2027 if artificial intelligence demand expands alongside constrained supply. Samsung shares rose 1.18% over the past month while SK hynix fell 8.98%, although SK hynix continued to lead over six months and one year. Analysts said future performance will depend on technological leadership and customer share rather than HBM demand alone.

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