Frequency Electronics stock price target raised to $34 from $26 at Freedom Broker

Investing.com - Freedom Broker raised its price target on Frequency Electronics, Inc. (NASDAQ:FEIM) to $34.00 from $26.00 on Thursday, while maintaining a Buy rating on the stock. The company, with a market capitalization of $266 million, has demonstrated impressive performance with a 107% return over the past year and 70% gain in the last six months.

The firm cited a methodology change in its valuation approach, switching from a discounted cash flow (DCF) model to a comparables-based approach, noting that the market has begun to recognize the stock’s undervaluation.

Freedom Broker pointed out that Frequency Electronics currently trades at a last-twelve-months (LTM) price-to-earnings ratio of 21.8x, which adjusts to 25.5x when applying the average effective tax rate of profitable defense peers (16.5%).

The research firm’s model assumes an even lower effective tax rate for Frequency Electronics due to deferred tax assets and other factors, which supports the higher price target.

Freedom Broker also noted that when Frequency Electronics delivers solid results, its P/E ratio typically exceeds the S&P 1500 Aerospace & Defense benchmark, suggesting potential for additional upside as the company’s earnings stabilize.

In other recent news, Frequency Electronics Inc. reported impressive financial results for the fourth quarter of 2025. The company’s revenue reached $69.8 million, marking a substantial increase compared to the previous year. This growth was attributed to advancements in its satellite programs and innovative product developments. However, specific earnings per share (EPS) forecasts were not provided, making it difficult to compare against actual results. Despite the lack of EPS forecasts, the company’s robust revenue performance stands out as a significant highlight. These developments reflect Frequency Electronics’ ongoing efforts to enhance its market position through strategic initiatives. The recent financial results emphasize the company’s commitment to growth and innovation. Analyst insights or upgrades were not mentioned in the recent updates.

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