Brokers’ take: SAC initiates coverage on ISOTeam with ‘buy’ call on growth drivers

SAC Capital has initiated coverage on ISOTeam with a “buy” recommendation and target price of S$0.073.

The target price implies a potential upside of 21.7 per cent from the counter’s last trading price of S$0.06 as at the midday trading break on Monday (Jun 24). Shares of Catalist-listed ISOTeam were trading 1.7 per cent or S$0.001 higher at the time.

SAC expects ISOTeam, which provides integrated building maintenance and estate upgrading solutions, to gain more market share and improve its margins.

This comes as construction demand in Singapore improves from 2025 to 2028, with the public sector contributing some 60 per cent of total demand.

“HDB upgrading cycles and neighbourhood renewal programmes provide a steady stream of income for companies like ISOTeam,” the research team said.

It noted that the backlog of projects from Covid-19 disruptions, coupled with the expected increase in infrastructure upgrades ahead of the upcoming Singapore general elections, could also present further opportunities for the group.

“ISOTeam is at the forefront of technological advancement in its sector and is expected to gain more market share and improve its margins,” SAC added.