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JPM Raises Samsung Electronics TP to 480,000 Won; SK Hynix to 3 Million Won, Shifts to P/E-Based Valuation
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JPM said in a report that long-term supply agreements (LTA) have paved the way for a new valuation framework for memory chipmakers. The logic is that buyers are not only concerned about price increases, but also about supply shortages; sellers, meanwhile, are not only seeking higher prices, but also order visibility before committing to substantial capital expenditures. LTAs effectively embed the concerns of both parties into contracts. As the proportion of LTAs in memory makers shipment mix continues to rise, the price-to-book (P/B) framework used for decades has become outdated and should be replaced by a price-to-earnings (P/E) approach. JPM raised its TP for Samsung Electronics to 480,000 won (based on 8x P/E on projected EPS for 20262027). It sharply lifted its TP for SK Hynix from 1.8 million won to 3 million won. For Kioxia (285A.JP), the TP was doubled from 38,000 yen to 80,000 yen, the highest in the market. Estimates show that even under aggressive capacity expansion assumptions, AI memory supply will still be insufficient to meet cloud vendors demand between 2026 and 2030. The shortfall is equivalent to approximately 450,000 wafers per month in capacity. (da/u) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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