"We expect more initiatives on this front and more contract wins in the near term," says Seet in his Feb 12 note.
He notes that ISOTeam's first drone pilot private project should start by Mar 2026, followed by HDB work in 2QFY2026.
According to Seet, by using drones - the first to do so locally - ISOTeam can possibly reduce costs by 30 to 40%. "We believe this will re-rate ISOteam significantly if it can deliver these solutions."
With the 1HFY2026 numbers, Seet expects ISOTeam to report stronger FY2026 earnings.
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He observes a pick up in the speed of new contracts won, which should help to further lift FY2026 earnings.
Seet is also expecting ISOTeam to sell non-core assets worth between $7 to 10 million. He did not specify what exactly.
Nonetheless, he expects a portion of the proceeds from this sale could be used to reward shareholders with special dividends or higher ordinary dividends.
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Meanwhile, with a positive outlook and more confidence now on execution, Seet has applied a higher valuation of 11x FY2026 to 2027 earnings, from 9x, thereby deriving a higher target price of 12 cents, from 10 cents previously.
In her Feb 13 report, Natalie Ong of CGS International estimates the cost savings from the workers' accommodation to be around $0.5 million.
Further moves along this line are expected, with the company planning to acquire another property that will be used as a training facility and with space for 400 beds. Ong estimates this will save around $2.4 million in operating costs.
Ong observes a delay in drone deployment and when that happens, ISOTeam should enjoy a re-rating.
She has raised her valuation from 8x FY2027 earnings, which is its 4-year historical average, to 12x, leading to a higher target price of 12.2 cents, from 11 cents.
Alfie Yeo of RHB Bank Singapore has kept his "neutral" call as the 1HFY2026 earnings were within his expectations.
"We reiterate our neutral rating on ISOTeam as we believe the stock has priced in its growth prospects," states Yeo in his Feb 12 report.
Nonetheless, like his peers at Maybank and CGS International, he has also raised his target price. From 7.8 cents previously, he now figures this counter is worth 8.7 cents, after rolling over his forward P/E valuation from the FY2026 earnings base to blended FY26-27F earnings.
ISOTeam shares were up 3.45% to 90 cents as at 11.38 am.
