[Click eStock] "SK Telecom, Stock Price to Continue Long-Term Upward Trend"

Hana Securities forecasted on the 26th that SK Telecom's stock price will continue its long-term upward trend. They maintained a 'Buy' investment rating and a target price of 70,000 KRW.

Kim Hong-sik, a researcher at Hana Securities, predicted that SK Telecom's profit growth next year will not be significant. He stated, "This year's profit has already risen to around 1.8 trillion KRW. Unless additional reductions in operating expenses are possible, mobile phone sales revenue must record a meaningful increase, which is not an easy task," adding, "Depreciation expenses are also expected to remain at this year's level. Although a decrease in capital expenditures (CAPEX) will lead to a downward stabilization of depreciation expenses in the first half of the year, after the frequency auction in the fall, the cost of frequency usage will increase along with a possible rise in depreciation expenses for tangible assets."

However, considering long-term performance estimates, he observed that the stock price will continue to rise. Researcher Kim said, "It is true that investor sentiment has shifted towards next year, and unlike this summer, expectations for SK Telecom's stock price increase have diminished. However, the likelihood of a significant price correction is low. The stock will attempt to rise again after next year."

He added, "With the continuous increase in dividends per share (DPS), the expected dividend yield currently stands at 6.7% based on the current stock price, offering significant price merit. Next year, the introduction of new services and pricing plans is expected to drive a phase of multiple expansion."