Sun Jung Lee, an analyst from Bank of America Securities, reiterated the Buy rating on Sk Telecom (SKM – Research Report). The associated price target is $30.31.
Sun Jung Lee has given his Buy rating due to a combination of factors that suggest a positive outlook for SK Telecom despite recent challenges. The company faced a data breach incident, which raised concerns about costs related to USIM replacements and potential subscriber churn. However, Lee believes these risks are manageable, estimating only a 1-5% downside to the 2025 expected operating profit. This is partly because a significant portion of SK Telecom’s customers are on bundled plans, making them less likely to switch carriers.
Additionally, SK Telecom’s first-quarter operating profit is expected to align with consensus, showing a 10% year-over-year increase, driven by effective cost control and growth in its broadband and AI businesses. Lee maintains a price objective of 71,000 KRW, supported by stable earnings and a promising dividend yield. The analyst sees limited downside risk and anticipates continued growth, which underpins the Buy rating.