[Click eStock] SK Telecom Target Price Lowered to 60,000 Won

NH Investment & Securities has lowered the target price of SK Telecom to 60,000 KRW while maintaining a buy rating.

On the 24th, NH Investment & Securities released a report on SK Telecom stating, "We are lowering the target price from the previous 62,000 KRW to 60,000 KRW," adding, "Considering the recent regulatory environment surrounding telecom stocks and the negative sentiment around the stock price, we are adjusting the valuation applied to the company downward."

NH Investment & Securities mentioned, "While stable performance growth in the telecommunications business continues, new challenges are underway in new businesses such as urban air mobility, artificial intelligence, subscription services, and the metaverse."

They also emphasized, "The uncertain situation, including the CEO vacancy at a competitor, rather highlights SK Telecom's stable management and premium position as the number one operator."

SK Telecom's 2023 performance is expected to be 18 trillion KRW in revenue, 1.76 trillion KRW in operating profit, and 1.09 trillion KRW in net income attributable to controlling shareholders. Although the introduction of a mid-tier pricing plan will have an overall negative impact, demand for higher-tier plans is also increasing simultaneously, so the actual effect on profits is expected to be minimal.