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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] On the 12th, NH Investment & Securities updated its outlook on ISC (095340), citing increased uncertainty in the operating environment of key customers and a decline in the valuation of global post-processing parts companies. The investment recommendation remains "Buy," but the target price has been reduced by 25% from ₩90,000 to ₩68,000. The closing price on the previous trading day was ₩48,500.
According to NH Investment & Securities, ISC's revenue for the third quarter is projected to be ₩53.2 billion, representing a 61.7% increase compared to the previous year, with an expected operating profit of ₩16.4 billion, marking a return to profitability. The server supply, particularly focused on graphics processing units (GPUs), is still robust, and revenue from North American customers for smartphones is anticipated to show positive trends.
The recovery in memory supply remains sluggish; however, a slight revenue rebound is expected starting in the fourth quarter. Analyst Moon emphasized that for stock price recovery, it is crucial to improve semiconductor investment sentiment and achieve results in line with third-quarter consensus estimates to restore confidence in the company's growth story.
NH Investment & Securities has adjusted its target price for ISC due to the uncertainties surrounding the operating environment of major customers and the overall decline in valuation of global post-processing parts companies. Despite some negative news related to key customers, it is expected that ISC's performance will have a limited impact until the first half of next year.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
