Filtronic - hitting New High of 206p, just 12% below my 232p Target Price
- Mark Watson-Mitchell
- 6 hours ago
- 2 min read
Mark Watson-Mitchell - 09.02.2026
Already this morning, in just four market hours, some 2,008,428 shares have been traded in Filtronic (LON:FTC), which is far higher than the recent daily average dealing volume of 1,581,075.
Based in Sedgefield, the £450m -capitalised group designs and manufactures RF-to-mmWave components and subsystems for mission-critical communication networks.
It develops products for telecommunications infrastructure, aerospace and defence, space, test & measurement, and critical communications.
The Musk Influence
Its major contracts to date have been with SpaceX, the Elon Musk-steered space vehicle, which is soon to declare a £1.1 trillion IPO in the States.
That float is likely to be at a staggering 60 times its current-year revenues!
That is good news for Filtronic - giving its largest customer such a mega-valuation when raising more cash for its fast-depleting coffers.
That is also bad news for Filtronic, because it should not be seen as a 'one-horse pony' whose own fortunes would become so dependent on SpaceX.
However!
In fact, the group should use that IPO to emphasise that it is rapidly developing its business with other potential major clients.
It is a specialist long-standing supplier to various global space and defence leaders, including Airbus, BAE Systems, Leonardo and QinetiQ.
The group is looking to accelerate the diversification of its customer base, with new multi-year recent contract wins including a €7.0m agreement with a European space customer and a £13.4m contract with a leading European defence prime, strengthening the group's position across the important space, aerospace and defence markets.
Last week, I was told by CEO Nat Edington that a raft of new orders has been received from, or are in discussions with, a further five major space players.
Management Comment
On Tuesday of last week, 3rd February, when announcing the company's Interim Results, CEO Nat Edington stated that:
"The first half of the year demonstrated the strength of Filtronic's positioning in markets where performance, reliability and security are mission-critical.
Demand across our space, aerospace and defence markets remains robust, and our focus on high-frequency RF technologies continues to differentiate us with customers operating in the most demanding environments.
With a record order book, increasing customer diversification and the business now operating at greater scale, we have entered the second half confident of continuing our planned growth."
My View
I am absolutely convinced that this group's shares, now 206p, are capable of stratospheric growth in price over the next few years, reflecting the substantial potential in the exploitation of its expertise within its marketplace.
(Profile 04.02.22 @ 11.6p set a Target Price of 14.5p*)
(Profile 04.01.24 @ 21p set a Target Price of 24p*)
(Profile 26.06.24 @ 67p set a Target Price of 80p*)
(Profile 10.02.25 @ 103p set a Target Price of 150p*)
(Profile 03.12.25 @ 135p set a Target Price of 175p*)
(Profile 04.02.26 @ 186p set a Target Price of 232p)
