Needham raises TTM Technologies target to $35, maintains Buy

Published 01/05/2025, 13:28
Needham raises TTM Technologies target to $35, maintains Buy

Thursday - Needham has increased the price target for TTM Technologies (NASDAQ:TTMI) to $35 from $33, while keeping a Buy rating on the stock. The adjustment follows TTM’s impressive start to 2025, highlighted by robust performance in the Aerospace & Defense (A&D) and Data Center Computing sectors, which together account for approximately 70% of the company’s business.

TTM Technologies reported first-quarter revenues and earnings per share (EPS) that exceeded the upper range of their guidance. With a market capitalization of $2.03 billion, the company’s Q1 revenue saw a 14% year-over-year increase, surpassing the consensus estimate of 9%. EPS also outperformed, coming in at 25% above what Wall Street had anticipated. InvestingPro analysis reveals several positive indicators, including expected net income growth and multiple analyst upward revisions for the upcoming period. Despite new tariffs, TTM indicated that there would be minimal direct impact on revenue and only slight challenges due to imported raw materials and equipment in the U.S.

The company’s outlook for the second quarter remains positive, with anticipated revenue growth of 11% year-over-year at the midpoint, which is higher than the consensus forecast of 6%. The EPS guidance provided is also better than expected. Management anticipates strong growth in four of the five major verticals during Q2. In response to these developments, Needham has revised its estimates for TTM Technologies for the years 2025 and 2026.

The firm’s analyst cited the unaffected end demand within TTM’s business as a sign of the company’s resilience, as demonstrated by the strong guidance for the second quarter. This performance and outlook have reinforced Needham’s decision to reiterate its Buy rating for TTM Technologies.

In other recent news, TTM Technologies reported a strong first quarter for 2025, exceeding analysts’ expectations with an earnings per share (EPS) of $0.50, compared to the forecasted $0.39. The company also reported revenue of $648.7 million, surpassing the anticipated $621.94 million. These results mark a 14% year-over-year revenue increase, driven by strong performance in the aerospace and defense markets. The company is also making progress with new facilities in Malaysia and New York, which are moving towards operational targets. Looking ahead, TTM Technologies projects Q2 2025 net sales between $650 million and $690 million, with non-GAAP EPS expected to range from $0.49 to $0.55. The company remains focused on expanding its aerospace and defense programs and anticipates potential benefits from U.S. manufacturing investments. There have been no significant changes in customer behavior due to tariffs, and TTM Technologies continues to work with customers to offer alternative manufacturing locations.

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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