ChainCatcher report: Morgan Stanley has upgraded its rating on the Korean stock market to "Overweight," with a target price of 9,000 points, implying a 36% upside from current levels. Morgan Stanley believes that the previous sharp deleveraging cycle is nearing its end, and KOSPI valuations have fallen to historically low levels, presenting investors with a more attractive entry point. Its data shows that hedge funds have completed approximately 75% of their deleveraging, while leveraged ETF assets have declined by 70% from their peak, significantly improving the market’s ownership structure. Shawn Kim, Head of Asia Technology Research at Morgan Stanley, highlighted three near-term catalysts for South Korean semiconductor stocks in the report. First, capital expenditures. The capital allocation moves by Samsung Electronics and SK hynix are viewed as the most important near-term catalysts. The market is awaiting specific announcements regarding their "value creation" initiatives and capital return plans; although timelines remain unclear, the mere expectation of such announcements serves as a potential catalyst. Second, HBM4 pricing. Samsung Electronics recently indicated that HBM4 will account for approximately 60% of its total HBM sales by the end of next year. If HBM4 prices reach the market’s expected level of over $3 per Gb, this could provide a positive catalyst for overall DRAM pricing in 2026–2027. Third, the iPhone 18 launch cycle. Mobile devices still account for 30%–40% of global DRAM demand and 25%–30% of NAND demand. According to feedback from Apple’s Korean supply chain partners—such as LG Innotek—Apple is optimistic about the iPhone 18 cycle, with expected unit shipments rising 5% to 10% year-over-year. The iPhone 18 is scheduled for release in September, with all initial models being Pro variants (including Pro, Pro Max, and foldable). Strong sales performance could provide a positive boost to Samsung Electronics and SK hynix.
Morgan Stanley upgrades South Korea's stock market to overweight with a 9,000 target
ChaincatcherShare
Summary
Morgan Stanley has upgraded the South Korean stock market to 'overweight' with a 9,000-point target, implying a 36% upside. The firm highlighted reduced leverage in hedge funds and leveraged ETFs, leading to improved market structure. Shawn Kim, Head of Asia Tech, cited Samsung and SK Hynix spending, HBM4 pricing, and the iPhone 18 cycle as key drivers. As altcoins to watch gain momentum, the crypto market remains closely tied to broader equity trends.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.