Korea Investment Securities announced on June 15 that it has raised its target price for Vitzrocell from 42,000 won to 53,000 won, an increase of 26.2%. The firm maintains a "buy" rating, citing growth prospects in high-temperature batteries and military primary batteries, along with increasing expectations for a new business involving lithium capacitors for AIDC servers.
Jang Jeong-hoon, a researcher at Korea Investment Securities, stated, "We have revised upward our annual performance forecasts for 2026 and 2027 to reflect the growth of the high-temperature battery and military primary battery sectors. The potential entry into the lithium capacitor market for AIDC servers could also serve as a new growth driver."
The firm anticipates that Vitzrocell's second-quarter results will align with market consensus, projecting an operating profit of 22.6 billion won. Following last year's acquisition of a Canadian battery pack company, Vitzrocell has strengthened its competitiveness in the high-temperature battery sector, and the recent fire incident involving a North American competitor has increased the likelihood of additional orders.
Expectations are also rising for the military primary battery segment. The company secured a stable order base last month by signing a supply contract for ampoule batteries for artillery with India.
The new business venture involving lithium capacitors for AIDC servers is also highlighted as a promising area. Jang noted, "It is still early to predict the volume and selling price, but the expectations for the new lithium capacitor business, based on lithium metal as a primary battery material, remain valid."
The supply-demand environment is expected to improve as well. Jang added, "With Vitzrocell's inclusion in the KOSDAQ 150 index as of May 22, effective from June 12, there is potential for passive fund inflows tracking this index, which could increase program-related volatility."
* This article has been translated by AI.
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