How are energy investors positioned?
On Monday, Truist Securities raised the price target for TTM Technologies (NASDAQ:TTMI) from $36.00 to $41.00, while maintaining a Buy rating on the stock. The adjustment reflects the firm’s positive outlook on the company’s growth prospects, driven by several key factors. The stock, currently trading near its 52-week high with an impressive 79.47% return over the past year, has garnered strong analyst support with a consensus rating of 1.25 (Strong Buy). According to InvestingPro, 4 analysts have recently revised their earnings estimates upward for the upcoming period.
TTM Technologies has been experiencing a robust phase, with the firm’s analyst pointing to three main areas of potential: the ramping production at the Penang site, the opportunities in Syracuse, and the company’s exposure to artificial intelligence (AI) technologies. These elements combined have led to a significant confidence boost from the company’s management team. The company’s recent performance supports this optimism, with revenue growing at 11.65% and a market capitalization of $3.48 billion. For deeper insights into TTM’s growth trajectory, InvestingPro offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks.
The analyst’s visit with TTM Technologies and investors revealed this heightened confidence in the company’s unique growth opportunities. Despite no changes being made to the earnings per share (EPS) estimates at this time, the optimism surrounding these growth prospects has been a pivotal reason for the price target increase.
The new price target of $41 is based on a 17 times multiple of the calendar year 2026 (CY26) EPS of $2.40, which aligns with the price-to-earnings (P/E) ratio of peer Electronic Manufacturing Services (EMS) companies. Notably, TTM Technologies has been highlighted for delivering an operating profit margin that is double that of its EMS peers.
In summary, Truist Securities’ revised price target for TTM Technologies reflects the company’s strong operational performance and strategic initiatives, which are expected to drive future growth and align its valuation with industry peers.
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, surpassing the forecasted $0.39. The company also achieved a revenue of $648.7 million, well above the anticipated $621.94 million, marking a 14% year-over-year increase. Needham has responded to this performance by raising TTM Technologies’ price target to $35 from $33, while maintaining a Buy rating on the stock. Additionally, TTM Technologies has announced a new share repurchase program, planning to buy back up to $100 million of its outstanding common stock, which is effective immediately and extends through May 2027. In corporate leadership news, the founder of TTM Technologies, Kent Alder, has retired from the company’s board, marking the end of an era for the company. Despite new tariffs, TTM Technologies indicated minimal direct impact on revenue, with only slight challenges due to imported raw materials and equipment in the U.S. The company’s outlook remains positive, with anticipated revenue growth of 11% year-over-year at the midpoint for the second quarter, exceeding the consensus forecast of 6%.
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