Meritz Predicts SK Telecom Profit Recovery by 2026 Driven by AI Data Centers

Meritz Securities has projected a recovery in SK Telecom's operating profit by 2026, attributing this positive outlook to the company's strategic investments in artificial intelligence (AI) data centers in South Korea.

According to the latest report, SK Telecom's operating profit is expected to reach levels seen in 2024, with a target price set at 111,500 won per share, maintaining a 'buy' rating. The company's stock closed at 84,100 won on the previous trading day.

Researcher Jeong Ji-su from Meritz noted that as SK Telecom recovers from previous cyber incidents, its scale and earnings potential are anticipated to exceed 2024 figures. The dual strategy involving SK Hyper and SK Horizon is expected to enhance the execution of domestic AI data center projects.

For the third quarter of this year, SK Telecom's consolidated sales are projected at 4.4484 trillion won, marking an 11.8% increase year-on-year. Operating profit is forecasted to surge by 1,004% to 534.7 billion won, aligning closely with market expectations.

The report also highlighted that the number of 5G subscribers is estimated to reach 18.16 million, with a penetration rate of 82.6% among handset users. This growth is further supported by the launch of flagship devices, which is expected to slightly increase the average revenue per user (ARPU) to 27,218 won, up 0.1% from the previous quarter.