Gold rally may be losing steam but no major correction seen: DB
Investing.com - Craig-Hallum has initiated coverage on Astronics (NASDAQ:ATRO) with a Buy rating and a $60.00 price target, according to a research note released Friday. The stock has shown remarkable momentum, delivering a 188% return year-to-date and currently trading near its 52-week high of $48.94.
The research firm highlighted Astronics’ "outsized exposure" to the aerospace and defense sector, noting the company stands to benefit from volume increases, penetration growth, and new contract opportunities. According to InvestingPro data, the company maintains a healthy financial position with liquid assets exceeding short-term obligations and a moderate debt level.
Craig-Hallum pointed to favorable profit and loss attributes for Astronics, specifically mentioning the potential for "double-digit revenue growth and 40%+ incremental margins" as key factors in its bullish outlook.
The firm suggested Astronics could experience an "upward re-rating" in the market, expressing the view that the stock "could double over the next few years" based on its analysis.
Craig-Hallum characterized Astronics as a company with "a myriad of attributes" that growth-at-reasonable-price (GARP) investors should find attractive, despite it "perhaps not [being] a household name."
In other recent news, Astronics Corporation reported its second-quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.38, compared to the forecasted $0.29. The company’s revenue reached $204.67 million, slightly surpassing the expected $203.94 million. In addition to its earnings report, Astronics announced the closing of a $225 million offering of 0% convertible senior notes due 2031. This offering included the full exercise of a $15 million option granted to initial purchasers. The proceeds were partly used to retire approximately $132 million of its 5.5% convertible notes due 2030. Astronics had initially priced $210 million of these 0% convertible notes in a private offering to qualified institutional buyers. The company plans to use the proceeds to refinance its existing debt and manage potential share dilution.
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