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On Thursday, Needham maintained a Buy rating on TTM Technologies (NASDAQ:TTMI) and raised the shares target to $24 from $21. The decision followed the company's release of its second-quarter results, which exceeded expectations.
TTM Technologies reported an 11% increase in Q2 revenues, surpassing both the high end of their guidance and the anticipated 7% growth projected by analysts. The earnings per share (EPS) also topped the upper range of their provided guidance.
The company's impressive performance was attributed to robust demand in the Aerospace & Defense sectors and growth in the AI-related data center business.
Additionally, TTM Technologies saw a sequential improvement across its major commercial markets. These factors contributed to the firm's optimism regarding the company's revenue prospects.
Looking ahead, the firm anticipates continued strength in the Aerospace & Defense and AI data center segments throughout the second half of the year. Signs of recovery in other commercial markets also add to the positive outlook for TTM Technologies. The Q3 revenue and EPS guidance provided by the company aligns with these expectations.
The analyst's outlook for TTM Technologies is positive, projecting steady growth into 2025. With the recent performance and future prospects in mind, Needham reiterates its Buy rating on the stock, signaling confidence in the company's growth trajectory.
In other recent news, TTM Technologies has been making notable strides in the market, with a series of positive developments. B.Riley maintained a Buy rating on TTM Technologies and increased the price target to $25.50, highlighting the company's growth potential.
This follows the firm's second-quarter results, which saw an 11% increase in revenues, surpassing both their guidance and analysts' projections. The company's robust performance was attributed to strong demand in the Aerospace & Defense sectors and growth in AI-related data center business.
Needham also maintained a Buy rating on TTM Technologies and raised the price target to $21, emphasizing the company's strong performance in the Aerospace & Defense and Data Center Computing sectors. These sectors have been key revenue drivers, contributing to over two-thirds of the company's Q1 revenue.
Additionally, the company has announced strategic expansions, including a new facility in Penang, Malaysia, and a proposed facility in Syracuse, New York, aimed at enhancing its aerospace and defense capabilities. The company also welcomed Mr. Wajid Ali, current CFO of Lumentum Holdings (NASDAQ:LITE) Inc., to its Board following the retirement of Dr. Dov S. Zakheim.
These recent developments reflect TTM Technologies' strategic focus on diversifying and stabilizing its business model, setting a foundation for sustained success in the competitive technology industry.
InvestingPro Insights
As TTM Technologies (NASDAQ:TTMI) garners a favorable outlook from Needham, real-time data from InvestingPro enhances our understanding of the company's financial position. With a market capitalization of $1.97 billion, TTM Technologies is navigating the market with a high earnings multiple, reflected in its current P/E ratio of 126.05. However, the adjusted P/E ratio for the last twelve months as of Q2 2024 stands at a more modest 32.58, indicating a potential normalization of earnings expectations.
InvestingPro Tips highlight that the company's net income is expected to grow this year, which aligns with the positive sentiment from analysts. This growth is anticipated despite the company's weak gross profit margins of 19.39% in the same period. On the positive side, TTM Technologies has shown a strong return over the last three months, with a 31.21% price total return, and liquid assets that exceed short-term obligations, suggesting financial resilience.
In terms of stock performance, TTM Technologies has experienced a significant price uptick over the last six months, with a 35.34% price total return. This is in stark contrast to the 8.5% drop observed over the last week, which may present a buying opportunity for investors who believe in the company's long-term prospects. For those interested in further analysis and tips, InvestingPro offers additional insights on TTM Technologies, which can be found at InvestingPro TTM Technologies.
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