Needham lifts TTM Technologies stock target to $33, maintains buy

Published 06/02/2025, 14:22
Needham lifts TTM Technologies stock target to $33, maintains buy

On Thursday, Needham increased its price target on TTM Technologies (NASDAQ:TTMI) from $30.00 to $33.00, while reiterating a Buy rating on the stock. The firm’s analysts highlighted TTM’s strong performance, particularly in its Aerospace and Defense (A&D) business, as well as improvements in its broad Commercial business.

TTM Technologies reported a robust 14% year-over-year revenue increase for Q4, surpassing both the consensus estimate of 11% and the high end of the company’s own guidance. This revenue surge contributed to a strong earnings per share (EPS) performance, which was further boosted by foreign exchange gains. The company maintains a healthy financial position with a current ratio of 2.0, indicating strong liquidity, while InvestingPro analysis shows the company is currently trading above its Fair Value.

Management at TTM Technologies anticipates continued strength in the A&D and Data Center Computing sectors, both of which exceeded expectations in Q4. Additionally, there are signs of improvement in the Medical (TASE:PMCN), Industrial, and Instrumentation (MII) and networking commercial sub-verticals. The company has projected Q1 revenue growth of between 5% and 12% year-over-year, compared to a consensus estimate of 6%, and has provided solid EPS guidance.

Needham’s decision to raise the price target is backed by a positive outlook for TTM Technologies, with expectations of double-digit EPS growth in 2026. Analysts at Needham believe that the shares of TTM Technologies are attractively valued, trading at 13 times their estimated earnings for the upcoming year. The firm’s analysts stand firm on their Buy rating, citing the increased price target as a reflection of the company’s continued momentum and strong financial guidance.

In other recent news, TTM Technologies reported a notable earnings beat in the fourth quarter, with adjusted earnings per share of $0.60, significantly surpassing the analyst consensus of $0.43. The company’s revenue also exceeded expectations, coming in at $651 million, a 14.4% increase YoY, and beating estimates of $630.6 million. The robust performance was primarily driven by high demand in its Aerospace and Defense, Data Center Computing, and Networking end markets. These recent developments also included a record contribution from Data Center Computing revenues, which accounted for 22% of total company revenues in the quarter.

Additionally, TTM Technologies provided an upbeat outlook for the first quarter of 2025, projecting revenue between $600 million and $640 million, with the midpoint exceeding the analyst consensus of $603.5 million. The company also anticipates adjusted earnings per share in the range of $0.37 to $0.43, higher than the $0.37 consensus at the midpoint. Furthermore, the company’s book-to-bill ratio for the fourth quarter was 1.09, indicating strong future demand, and it reported a record Aerospace and Defense program backlog of $1.56 billion, further underlining its positive outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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