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Investing.com - UBS initiated coverage on King Slide Works Co Ltd (TPE:2059) with a Buy rating and a price target of NT$4,750.00, representing 18% upside potential.
The Taiwan-based company specializes in rail kits and slides for servers, which account for 80-90% of its total sales, according to UBS.
UBS highlighted King Slide ’s high exposure to major cloud service providers through its leading position in AI server rail kits, positioning the company to benefit from secular growth in AI servers.
The investment bank also noted King Slide’s increasing content value for GPU and ASIC servers amid rising design complexity as a positive factor for the company’s outlook.
UBS cited the company’s proven track record supported by numerous patents that create a strong competitive moat, helping King Slide maintain high margins and market share in its sector.
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