Jarick Seet of Maybank Securities, citing open market buying of shares by ISOTeam' s CEO Anthony Koh and a busier construction outlook, has maintained his " buy" call on the stock along with a higher target price of 10.4 cents from 9 cents previously.

" With an ongoing construction upcycle last seen during the post-Global Financial Crisis era, coupled with the strong order book as well as the CEO buying the shares despite outperformance in its share price, we believe the outlook is brighter for ISOTeam," says Seet in his March 24 note.

He observes that ISOTeam' s share price has already gained 26% year to date and up 133% y-o-y but even so, CEO Koh has recently paid 7.55 cents each to buy 3 million shares.

" We believe the commitment of the CEO&rsquo s own funds is the best validation of Isoteam  &rsquo s outlook," says Seet.

ISOTeam, best known as a painting contractor, is poised to start deploying drones to do this job. According to Seet, being the only contractor in town to use this method, ISOTeam can possibly cut costs by between 30 and 40%.

Also, the strong pipeline of building projects will help ISOTeam build up a bigger orderbook that includes works involving the public sector. " We believe ISOTeam will be a key beneficiary of the upcoming Singapore election and the ongoing construction boom," says Seet.

" We think sector margins could potentially be higher than we previously expected due to the increase in demand, coupled with ISOTeam&rsquo s high operating leverage," says Seet.

He has revised his FY2026 earnings estimate by 8% and FY2027' s by 11.5%, leading to his higher target price of 10.4 cents which is pegged to the same 9x blended FY2025 and FY2026 earnings.

ISOTeam shares traded at 7.7 cents as at 9.45 am, down 1.28%.

 

Alfie Yeo of RHB Bank Singapore has raised his target price for ISOTeam from 7 cents to 8 cents, as he has become more positive on the company' s earnings outlook.

" We see it benefiting from and riding on more government projects ahead of the parliamentary election due by the end of 2025," says Yeo in his March 21 note.

Upcoming projects that ISOTeam may go for include new hawker centres, upgrading of coffeeshops, additional facilities in housing estates. There is also the move to apply heat-reflective pain on all public housing by 2030 - a market ISOTeam is already in.

" As such, we expect construction activities to ramp up, ahead of the upcoming polls and beyond. These should benefit ISOTeam, as it could garner more orders and record stronger revenue recognition going forward," says Yeo.

For the current FY2025 to FY2027, Yeo has raised his earnings estimates by 11% each, as project timelines are seen to accelerate. In addition, Yeo figures that ISOTeam will enjoy better gross margins.

The company, as an indication of its earnings visibility, has recently introduced a new dividend policy of a 30% payout ratio going forward, which raises Yeo' s estimated dividend yield to 5% from 4%.