Berenberg raises target price on Filtronic

(Sharecast News) - Berenberg lifted its price target on Filtronic from 360p to 440p, saying a new onsatellite development contract underlines the company's growing traction in the spaceinfrastructure market.

The analysts said Filtronic's FY26 trading update showed adjusted underlying earnings slightly ahead of consensus, with revenue and EBITDA of at least �55.5m and �11.1m, respectively. Yearend net cash remained strong at �11.3m, despite investment in engineering and its new Sedgefield facility. Customer concentration was also shown to be easing, with SpaceX's contribution falling from 83% as defence and other clients scale up.

Berenberg said the key development was a second contract with the same unnamed US customer behind the $8m order announced in March, with the new deal, worth around $500,000, covering initial development of a highfrequency module for onsatellite use and was expected to lead to larger followon orders. Berenberg said this supports its view that Filtronic was penetrating new parts of the spaceinfrastructure value chain and building relationships with major industry players.

The German bank added that FY27 revenue was now 90% covered by the order book, giving record visibility and potential upside to estimates.

Berenberg kept its 'buy' rating and said the higher target reflects a 20% uplift to its forward revenue runrate assumption, driven by growing onsatellite opportunities. While acknowledging the strong shareprice performance yeartodate, it stated Filtronic's longterm growth potential across space and defence markets remained compelling.

Reporting by Iain Gilbert at Sharecast.com