[Click eStock] "Buy SKT with a Three-Month View... Year-End Attempt to Reach Previous High"

Hana Securities stated on September 30 that it maintains a bright outlook for the stock price of SK Telecom and recommends aggressive buying for a period of more than three months. The firm expects strong third-quarter earnings and noted that there are many factors beginning in October that could help boost the company's share price. Some analysts also predict that by year-end, SK Telecom may attempt to reach its previous high of 140,000 won.

Hongshik Kim, an analyst at Hana Securities, expressed this view in an October strategy corporate analysis report on SK Telecom released on the same day. He maintained a "buy" investment opinion and a 12-month target price of 140,000 won.

"We present SK Telecom as the top pick for the domestic telecommunications service sector for the next 12 months and also for October," Kim said, citing the following reasons for his recommendation: ▲ Expectations that the company’s annual consolidated operating profit will reach 2 trillion won in 2026 due to solid third-quarter results ▲ Forecast of increased DPS (dividends per share) in the fourth quarter ▲ A positive long-term DPS outlook based on data center profits ▲ The value of its stake in Anthropic.

He added, "At the current share price level, SK Telecom offers particularly strong mid-to-short-term investment appeal through year-end." The previous day, SK Telecom's shares closed at 86,200 won.

Kim continued, "The stock outlook for SK Telecom remains positive in October," explaining, "We expect strong third-quarter performance, the possibility of an IPO by Anthropic, designation as a national AI provider, and the full-scale launch of investments in AI data centers and base stations."

He further explained, "Based on strong earnings and cash flow, after the fourth quarter—when untaxed dividends are implemented—net dividends could increase. In the AI business segment, SK Telecom is best positioned to demonstrate tangible value through its data centers and base stations." He estimated SK Telecom’s consolidated operating profit this year to be close to 2 trillion won, contrary to earlier concerns. The valuation gain from Anthropic is also expected to be at least 3 trillion won and up to 7 trillion won.

Total dividends for this year are expected to recover to 2024 levels. Kim forecast, "Fourth-quarter net dividend per share will be about 1,050 won, and AI base stations will drive an increase in parent-company mobile sales. SK Hyper and SK Horizon are expected to increase the company’s dividend through data center-generated profits." He added, "On the back of numerous positive factors, share price gains are likely to be attempted repeatedly through year-end."

Addressing some concerns that SK Telecom shares are not cheap, Kim countered, "Those evaluations are based solely on relative PER (price-to-earnings ratio) and PBR (price-to-book ratio) indicators." He continued, "Given the long-term DPS growth rate, the expected dividend yield suggests significant further upside. SK Telecom will continue to play a leading role among the three telecom operators in October." Kim concluded, "Valuation gains from Anthropic, totaling several trillion won, could significantly improve the company’s cash flow, and attempts to reach the previous high of 140,000 won could appear by year-end."

This content was produced with the assistance of AI translation services.