DS Securities said on the 20th that ISU PETASYS continues to see demand exceeding production capacity (capa) and raised its target price to 154,000 won from the previous 50,000 won. ISU PETASYS closed at 127,600 won the previous day.
DS Securities projected ISU PETASYS's fourth-quarter results on a consolidation basis at 308 billion won in revenue and 61 billion won in operating profit.
Researcher Lee Su-rim at DS Securities said, "Strong demand versus capa continues," adding, "In the fourth quarter, sales for artificial intelligence (AI) accelerators and network switches will drive companywide revenue."
The outlook was for even steeper growth next year. For 2026 results, the forecast was 1.44 trillion won in revenue and 285.9 billion won in operating profit on a consolidation basis.
The researcher said, "The effect of the fifth plant expansion will be fully reflected starting in the first quarter next year, and additional increases in the average selling price (ASP) are expected due to higher performance requirements from the inclusion of Nvidia's next-generation AI accelerator 'Rubin,'" adding, "Accordingly, stepwise quarterly earnings growth is expected, and on a separate basis, revenue will grow 35% year over year."
The researcher added, "Considering demand exceeding capa and capacity losses from the shift to higher-layer stacking, there is a possibility of additional capacity expansion before 2029," and "ISU PETASYS has already established itself as a core value chain partner for major application-specific integrated circuit (ASIC) companies, including Company G, and next year's earnings growth will begin in earnest."