Filtronic – patient investors should be buying this early-stage but fast-developing technology group’s shares now at 217.50p

Mark Watson-Mitchell

1 minute ago

3 min read

Mark Watson-Mitchell – 30.10.2026

Ahead of today’s AGM Filtronic (LON:FTC), the designer and manufacturer of advanced RF solutions for the space, aerospace and defence, and telecoms infrastructure markets, has issued an AGM Trading Update.

It highlighted its strong order flow for FY2027, including its largest-ever order of $68.1m (£51.3m) from SpaceX for E-band GaN SSPAs, and two further contracts totalling $16.0m (£11.1m) with a US customer for satellite prototype units.

The company has also secured its first contract, valued at $0.3m, with a US satellite manufacturer for Ka-band GEO satellite development, and has completed its first Digital Intermediate Frequency product.

In defence, Filtronic secured three new contracts worth £2.1m for airborne radar systems and a £2m grant from UKDI for chipset technology development, positioning the company for continued growth with significant revenue visibility.

The group’s shares have been up to 235p this morning but have since fallen away to 217p as I write on the back of low dealing volumes.

I consider that as Filtronic continues to build its defence business and diversify its revenue base, its shares will react positively to further contract news as it progresses into 2027.

Broker Views

Analysts Edward Stacey and Kimberley Carstens at Cavendish Capital Markets have reiterated their Buy rating on the group’s shares, with a Target Price of 290p.

They note that Filtronic issued an in-line AGM update highlighting continued execution of its product and market expansion, customer diversification strategies, and a record contracted order book that provides >90% FY28E revenue coverage.

“The AGM update reports an initial $0.3m development order for Ka-band amplifiers for GEO ground stations, expected to lead to further production orders which we believe will occur in early FY28 (post-May 2027).

As Filtronic expands into Medium Earth and Geostationary Earth Orbit (MEO/GEO) applications, it reports strong commercial interest in first-to-market V-band 200W amplifier systems that open access to a $3bn serviceable addressable market over the next 10 years across future satellite programmes to replace legacy technologies.

Another new sat-com development is the prototype launch of its first Digital Intermediate Frequency (Di-Fi) product, anticipated to meet growing LEO ground station demand to support cost-effective bandwidth and capacity requirements as data throughput grows exponentially.

In Defence, three new contracts worth £2.1m extend existing programme activity, and we continue to highlight that end-to-end secure manufacturing and testing facilities at the new £200m-revenue-capacity Sedgefield HQ support further growth prospects.

As it invests in new capability, capacity and next-generation products, proven by a record $68.1m SpaceX GaN E-Band order earlier this month, FTC is well positioned for its next phase of growth.

We make no change to forecasts of revenue £60m in FY27E, rising to £75m in FY28E, at stable 15% adj PBT margins.

We reiterate our Buy rating and 290p TP.”

My View

Not for the faint-hearted, however, I take the view that Filtronic shares, which touched 480p earlier this year and are now just 217.50p, are an excellent technology sector purchase.