Korea Investment & Securities suggested a buy rating for SK Telecom and set a target price of 70,000 won. This is based on the judgment that the stock price will recover after a delay.
On the 12th, Korea Investment & Securities noted in its report on SK Telecom titled "The rebound has occurred, and June will be a turning point" that "it is a time when we can expect the government's administrative guidance to lift the suspension of new subscriber recruitment."
Kim Jeong-chan, a researcher at Korea Investment & Securities, said, "The replacement of the number of USIM applicants is expected to be completed within June," adding, "We will be able to defend against a decline in market share."
He also stated, "Future incentives for subscriber number portability will be influenced more by subsidy policies than by information leaks," and added, "SK Telecom will be able to mitigate subscriber churn and defend against market share decline through a flexible subsidy policy."
According to the number portability statistics from the Korea Telecommunications Operators Association (KTOA), the net churn of SK Telecom subscribers was recorded at 520,000 in April and May (110,000 in April and 410,000 in May).
Researcher Kim said, "SK Telecom's stock price rebounded from a low of 50,700 won (with a dividend yield of 7%)," and noted, "If the stock price recovers to the previous peak (+10%) within the year, the total shareholder return for the second half reflecting the dividend yield (6.6%) will be at an attractive level."