SK Telecom Co Ltd (SKM) Stock Takes a Dip to $21.77 on July 7

SK Telecom Co Ltd (SKM) shares fell 7.66% on July 7, reaching an intraday low of $21.66. The stock is 11.42% below its 52-week high and 9.75% above its 52-week low. Analysts forecast an average target price of $25.08, implying an upside of 15.18% from the current price. The estimated GF Value for SKM in one year is $21.11, suggesting a downside of 3.05% from the current price.

SK Telecom Co., Ltd. (SKM) shares experienced a significant drop on July 7, falling by 7.66% to reach an intraday low of $21.66. This decline has pushed the stock 11.42% below its 52-week high and 9.75% above its 52-week low. Analysts have forecasted an average target price of $25.08, indicating an upside of 15.18% from the current price. The estimated GF Value for SKM in one year is $21.11, suggesting a potential downside of 3.05% from the current price.

The recent downturn in SK Telecom's stock can be attributed to the company's involvement in a data breach incident. The Ministry of Science and ICT (MSIT) concluded its investigation on July 4, finding SK Telecom liable for the breach that first surfaced in April. As a result, SK Telecom has announced fee exemptions for cancellations made between April 19 and July 14 and launched multiple consumer benefits worth approximately W500 billion to mitigate the fallout from the incident. The company has also revised its 2025 revenue guidance downward by 4.5%, from W17.8 trillion to W17 trillion.

Goldman Sachs, in a recent report, downgraded SK Telecom's stock from Neutral to Sell and lowered its price target to KRW42,000.00 from KRW54,000.00. The investment bank expressed concern that the level of countermeasures implemented by SK Telecom suggests a real risk of brand deterioration, which may negatively impact the company's market share and long-term position as the market leader. Additionally, there is a potential risk to SK Telecom's 2025 cash dividend, with the annual payout amounting to approximately W750 billion, while the potential financial impact from the breach could be W700 billion or more, including possible government penalties.

Investors should closely monitor SK Telecom's response to the data breach and its impact on the company's financial health and market position.

References:
[1] https://finance.yahoo.com/research/reports/MS_0P000004RV_AnalystReport_1751932924000?ncid=yahooproperties_plusresear_nm5q6ze1cei&yptr=yahoo
[2] https://www.investing.com/news/analyst-ratings/sk-telecom-stock-downgraded-to-sell-by-goldman-sachs-on-data-breach-fallout-93CH-4123867