[Click e-Stock] "ISU Petasys in Supplier-Dominated Market... Target Price Raised"

Sangsangin Securities analyzed on November 13 that ISU Petasys is expected to continue its structural growth in a supplier-dominated market. The firm maintained its "Buy" investment rating and raised the target price to 1,380,000 won.

Jung Minkyu, a researcher at Sangsangin Securities, stated, "The supplier dominance in the high-layer MLB market is expected to become even more solid," adding, "The transition of major clients to a service-based business model, where they provide their own artificial intelligence (AI) semiconductors to external cloud customers, will enhance ISU Petasys's growth visibility."

He also expressed expectations for strong growth next year. Sangsangin Securities forecast that ISU Petasys's sales and operating profit for next year will reach 1.0572 trillion won and 203 billion won, respectively, representing year-on-year increases of 26.3% and 99.3%.

Additionally, the company expects third-quarter sales and operating profit this year to reach 268 billion won and 53.6 billion won, up 29.8% and 107% year-on-year, respectively. He emphasized, "The supply effect of new-generation TPU products for clients and the stabilization of production for 800G network switch products have been key drivers for performance improvement," adding, "Third-quarter results are expected to exceed consensus."