Goldman Sachs Raises Target Prices for SK Hynix, Samsung Electronics, and Kioxia

According to a Goldman Sachs report, on June 1, Goldman Sachs significantly raised the target prices for SK Hynix, Samsung Electronics, and Kioxia. The target price for SK Hynix was increased to 3.3 million to 3.5 million KRW (approximately 3.3 million to 3.5 million KRW), Samsung Electronics’ target price was raised to 480,000 KRW, and Kioxia was upgraded to "Buy" with a 12-month target price of 93,000 JPY. Goldman Sachs believes that the valuation framework for the memory industry is shifting from price-to-book ratio to price-to-earnings ratio, and expects shortages in DRAM, NAND, and HBM supply to continue until 2028, with the HBM market size for 2027 being revised up by 54% to $116 billion. Goldman Sachs warns that the new valuation framework requires balance sheet support; otherwise, there is a risk of repeating the events of 2017.