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Investing.com - Freedom Capital Markets has lowered its price target on Frequency Electronics, Inc. (NASDAQ:FEIM) to $33.00 from $34.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock trades at a P/E ratio of 12.2x and has delivered an impressive 130% return over the past year, despite recent market volatility.
The adjustment follows Frequency Electronics’ first quarter fiscal 2026 results, which Freedom Capital described as "overall weaker than our expectations." The firm noted that the decline was primarily driven by underperformance in the U.S. commercial and government satellite programs segment. Despite the quarterly weakness, InvestingPro analysis shows the company maintains strong fundamentals with a healthy current ratio of 2.3x and operates with moderate debt levels.
Despite the weaker quarterly performance, Frequency Electronics announced a $20 million allocation for share repurchases, signaling confidence in its long-term outlook.
The company also highlighted its participation in several defense programs including Golden Dome, Patriot missile systems, and the THAAD missile defense system, which could provide future revenue opportunities.
Freedom Capital Markets reaffirmed its Buy recommendation on Frequency Electronics stock despite the slight reduction in price target from $34 to $33.
In other recent news, Frequency Electronics, Inc. reported a decline in its financial results for the first quarter of fiscal year 2026. The company announced a consolidated revenue of $13.8 million, which is a decrease from the $15.1 million reported in the same period last year. Net income also saw a reduction, with the company posting $634,000, or $0.07 per share, compared to $2.4 million, or $0.25 per share, in the previous year. Despite these declines in revenue and net income, Frequency Electronics experienced a positive movement in its stock price. The company has not announced any mergers or acquisitions recently. No analyst upgrades or downgrades have been reported for Frequency Electronics at this time. These developments provide investors with the latest insights into the company’s financial health.
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