SK hynix Could Close Its Valuation Gap Soon, Says Wedbush. That’s Good News for SKHY Stock.

SK hynix, a South Korean memory chip manufacturer, is set to buy back $29 billion of its stock over the next three months, starting August 20. This move, along with returning more than 50% of its free cash flow to shareholders, could help SK hynix close the valuation gap with its peers, according to Wedbush analysts. Furthermore, the company could generate an additional $130 billion in shareholder returns by 2027, driven by rising memory-chip prices.

Analysts also expect SK hynix to deliver strong performance in the next couple of years, supported by robust memory-chip sales, high profitability, and solid operating cash flow. This positive outlook has led to a consensus "Strong Buy" rating from 11 out of 15 analysts covering the stock, with a price target of $245.40, representing a 57.5% upside from current levels.