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Investing.com - Truist Securities upgraded Astronics (NASDAQ:ATRO) from Hold to Buy and raised its price target to $49.00 from $32.00 on Friday. The stock, which has surged nearly 94% over the past six months according to InvestingPro data, currently trades at $34.87.
The aerospace supplier currently has approximately $95,000 of line fit content on each Boeing (NYSE:BA) 737 MAX aircraft, with potential to increase to $150,000 depending on airline buyer furnished equipment, according to Truist Securities.
The firm expects Astronics to maintain its 2025 revenue outlook of $820-$860 million despite potential pressures from tariffs and related uncertainty, with MAX annual revenues projected to reach 8-10% of total company revenues in the 2026-2027 period.
Truist Securities cited recent commercial aerospace bookings, revenue growth, and aerospace segment margins hitting multi-year highs of 16% in the past two quarters as evidence of sustainable financial performance through 2025 and into 2026.
The firm believes Astronics’ sharply discounted enterprise value to EBITDA multiple of 9x (a 47% discount to peers) is no longer warranted, and arrived at the new price target by applying a 13.5x multiple to its 2026 EBITDA estimate of $152.8 million.
In other recent news, Astronics Corporation reported strong first-quarter earnings for 2025, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $0.44, more than double the projected $0.21. The company also exceeded revenue forecasts, generating $206 million compared to the anticipated $193.64 million. In addition to its financial performance, Astronics announced the acquisition of Envoy Aerospace for approximately $8 million, enhancing its capabilities in aircraft modifications and FAA certification processes. The acquisition is expected to address the increasing demand for aircraft modifications, including connectivity and cabin reconfigurations. Shareholders of Astronics approved several key proposals at the company’s 2025 Annual Meeting, including the election of the Board of Directors and the ratification of Ernst & Young LLP as the independent auditor. Furthermore, they approved an amendment to the Long Term Incentive Plan, increasing the number of shares available for issuance. These developments reflect Astronics’ strategic moves to strengthen its market position and investor confidence in its governance.
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