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Benchmark raised its price target on TAT Technologies (NASDAQ:TATT) to $36.00 from $35.00 on Wednesday, while maintaining a Buy rating on the stock. The increase follows strong first-quarter 2025 results from the aerospace component manufacturer. According to InvestingPro data, TAT has demonstrated remarkable performance with a 70.93% return over the past year, supported by solid financial health metrics.
TAT Technologies reported an adjusted EBITDA margin of 13.5% for the first quarter of 2025, exceeding Benchmark’s expectations of 12.9%. The firm noted this performance was ahead of its previous fiscal year 2026 assumptions, indicating accelerated margin improvement. The company’s strong execution is reflected in its impressive 30.58% revenue growth over the last twelve months, with analysts expecting continued sales growth this year.
The company recently secured a major auxiliary power unit (APU) contract with a leading air cargo carrier, which Benchmark identified as a significant win. The research firm expects additional orders to materialize throughout the year as TAT’s landing gear cycle begins to ramp up.
Benchmark cited TAT’s recent equity offering as providing working capital and resources to execute on the company’s growing backlog. The firm views TAT as a "thematic play on trusted OEM partner for an aerospace supply chain in flux."
The new $36 price target represents a 2026 EV/EBITDA multiple of 16.0x, which Benchmark considers appropriate relative to peers SARO (16x/13.3% margin) and VSEC (18x/16% margin). The firm believes TAT’s margin profile will continue to benefit from increased volume utilizing capacity installed over recent years. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels. For deeper insights into TAT’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, TAT Technologies reported impressive financial results for fiscal year 2024, achieving a 34% increase in annual revenues to $152 million, surpassing analyst estimates. The company’s adjusted EBITDA also rose significantly by 67% year-over-year to $18.6 million. Benchmark analysts maintained their Buy rating for TAT Technologies, raising the price target to $35.00, citing the company’s strong fourth-quarter performance and strategic market positioning. Additionally, TAT Technologies announced a public offering of 1,625,000 ordinary shares and a secondary offering of 2,525,000 shares by selling shareholders, with proceeds earmarked for corporate purposes. The company also secured an expanded maintenance, repair, and overhaul partnership with an international cargo carrier, valued between $45 million and $55 million over five years. Truist Securities initiated coverage with a Buy rating, highlighting the company’s potential in the aerospace aftermarket component repair sector. Analysts have noted TAT Technologies’ strategic achievements in Auxiliary Power Unit repairs and its ability to capitalize on new contracts. TAT Technologies’ growing backlog, now at a record $429 million, underscores robust demand and a positive outlook for future revenue.
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