Meritz Securities upgrades SK Telecom to 'Buy' on earnings recovery, dividend appeal

Meritz Securities has upgraded its investment rating for SK Telecom, moving from 'Hold' to 'Buy' on July 16th. The brokerage firm also increased its target price for the South Korean telecommunications giant's shares, setting it at 110,000 won, up from the previous 98,000 won.

This upward revision is driven by the firm's assessment of SK Telecom's improving financial performance and the anticipated resumption of attractive dividend payouts. Analyst Jeong Ji-soo at Meritz Securities highlighted that the upgrade considers the normalization of earnings and the recommencement of dividend payments.

SK Telecom's stock closed at 85,000 won the previous day. The brokerage's decision signals increased confidence in the company's future prospects, particularly its ability to generate stronger profits and reward shareholders. The target price suggests a significant upside potential from the current market valuation.

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We are upgrading our investment opinion to Buy, considering the earnings recovery and dividend resumption.