SKHY int Buy @ UBS pt 204 Analyst comments: "SK Hynix shares now discount a long-term return on equity broadly in line with the 17.7% averag

SKHY int Buy @ UBS pt 204 Analyst comments: "SK Hynix shares now discount a long-term return on equity broadly in line with the 17.7% average following DRAM consolidation in 2012 and before the AI era in 2022, versus our 2027—2031 estimated average of 40.2%. Yet, we believe the memory semiconductor industry has drastically changed, with agentic AI set to boost memory bit-demand growth into 2027. We expect DRAM bit-demand growth to increase to 36% year over year from 22% in 2026, and NAND growth to rise to 23% from 20%. At the current valuation, we do not believe the shares fully reflect structurally higher memory profitability, stronger free cash flow generation, and enhanced returns to shareholders." Analyst: Nicolas Gaudoi