Barclays initiated coverage on SK Hynix with an overweight rating and a $330 price target, implying roughly 100% upside. The bank cited a persistent memory shortage, HBM pricing power, and the company's strong cash position as key drivers. SK Hynix ADR surged more than 27% on the day.
Barclays initiated coverage on SK Hynix with an overweight rating and a $330 price target, implying roughly 100% upside. The bank cited a persistent memory shortage, HBM pricing power, and the company's strong cash position as key drivers. SK Hynix ADR surged more than 27% on the day.
SK Hynix ADR surged 27% Tuesday after Barclays initiated coverage with an overweight rating and $330 price target, implying the stock could double.
"We see some upside to gross margins nearer term but the biggest delta to Bloomberg consensus is materially higher 2027 revenues driven by HBM pricing uplift and SKHY's strong position," Simon Coles, analyst at Barclays, said in a note Tuesday.
The $330 target represents roughly 100% upside from Monday's close. Barclays expects a continued memory shortage across the technology sector to support higher pricing and drive revenue growth. The bank also estimates SK Hynix will hold cash equivalent to more than 40% of its current market capitalization by the end of 2027, providing capacity for share buybacks that could further boost earnings.
The bullish call aligns with broad Wall Street sentiment. Of 37 analysts covering SK Hynix, 36 rate the stock buy or strong buy, with only one hold, according to Koyfin data. The company's Nasdaq debut last week and its leadership in high-bandwidth memory, a critical component for AI data centers, have drawn investor attention as the AI investment boom drives a demand supercycle for memory chips.
SK Hynix ranked among the top 10 trending tickers on Stocktwits, with retail sentiment neutral and message volume extremely high. The Roundhill Memory ETF, which tracks the memory sector, is down about 17% over the past month but up 116% since its inception in April, reflecting the sector's volatility during a period of strong long-term demand.
The Barclays initiation reinforces the thesis that HBM pricing power will drive outsized revenue growth for SK Hynix through 2027. Investors will watch memory pricing trends and the company's next earnings report for signs of margin expansion.
This article is for informational purposes only and does not constitute investment advice.
