The Forecast Just Changed on SK Telecom Co.Ltd (NYSE:SKM)

The Forecast Just Changed on SK Telecom Co.Ltd (NYSE:SKM)

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The SK Telecom Co.Ltd (SKM) shares are trading at lower $18.61. The current analyst price target stands at $27.20.

To add more color to this target, the company’s high over the last year is $24.97 and the low is $14.07. Over the last 52 weeks, SKM is down -25.47% while the S&P 500 is down -2.38%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, SKM reported a profit of $3.07 billion. SK Telecom Co.Ltd also saw revenues increase to $3.56 billion. In addition, SKM has free cash flow of -$58.45 million as of 03-2020 The company’s EBITDA came in at $241.63 million which compares well with its peers.

SKM booked profit margins of 4.50%, its Return on Equity (ROE) is 3.60%, and its Return on Assets is 1.80%. All told, it is clear that, SKM needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SKM has a short ratio of 0.72 and outstanding shares of 658.24M.

Company Outlook

SKM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.38 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.03. SK Telecom Co.Ltd SKM also noted assets of $35.46 billion at the end of the last quarter. Investors should also keep an eye on sector updates as SKM has historically followed its peers on positive news.

All told, SK Telecom Co.Ltd SKM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SKM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

SK Telecom Co.Ltd SKM is now commanding a market cap of 13.59B and a float of 520.68M. SKM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SKM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in SKM, either long or short, and we have not been compensated for this article.