On Tuesday, Goldman Sachs reiterated its Buy rating on King Slide Works Co Ltd (2059:TT) with a maintained price target of NT$2,000.00. The firm's analysts highlighted the company's growth potential, which is expected to benefit from an increase in AI servers and a recovery in the general server market.
King Slide, recognized for its leading position in server rail kit designs and intellectual properties, is poised to capitalize on industry growth. The analysts anticipate a robust revenue increase for the company in the fourth quarter of 2024, projecting a 15% quarter-over-quarter rise to NT$3.0 billion. This forecast follows a significant year-over-year revenue growth of 81% in the third quarter of 2024.
The expected growth for the last quarter of the year is attributed to the ramp-up of the next generation of full rack AI servers. This product advancement is set to support the company's revenue trajectory, as noted by Goldman Sachs analysts.
The firm's confidence in King Slide's technology moat and market leadership underscores the rationale for the Buy rating and ambitious price target. The company's innovative server solutions are seen as a key driver for its future success in the competitive tech industry.
Investors are keeping a close eye on King Slide as the company continues to navigate the expanding server market, with Goldman Sachs' analysis providing a positive outlook for the company's performance in the upcoming quarter.
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