Freedom Broker Ups Target Price to $54 on TAT Technologies
TAT Technologies has seen its shares recommended by Freedom Broker analysts as 'Buy', despite a slight cut in target price. The analysts estimate that TAT's fair value is $54, implying an upside potential of about 35% from the current price of $39.6.
The company's second-quarter results were solid, with revenue rising by nearly 23% to $52.9 million and gross profit increasing by 23% to $13.3 million. Quarterly operating profit rose by 26.8% to $5.6 million, while adjusted EBITDA was $7.4 million versus $6.1 million a year earlier.
The most notable recovery occurred in APU operations, where improved parts availability enabled the company to complete and ship work that had previously been delayed. TAT received the status of sole authorized distributor of spare parts for the 331-200/331-250 APU platform from Honeywell Aerospace.
Despite a strong second-quarter momentum partly reflecting a rebound after supply-chain disruptions in the first quarter, analysts warn that such a high growth pace should not be expected to repeat in the coming quarters. The backlog and long-term agreements as of June 30 reached approximately $615 million versus $580 million at the end of the first quarter.