Filtronic - shares on the move ahead of new Space Award, now 135p, a new 175p SQC TP

Mark Watson-Mitchell - 03.12.2025

It is beginning to edge upwards again!

Over the last few days the shares of the £300m-capitalised Filtronic (LON:FTC) have moved gradually from 125p to hitting 135p this morning.

That may not create earthquakes in some quarters, however it is a positive advance.

The shares of the Sedgefield-based group were up to 175p less than six months ago, before profit-taking set in and allowed them to ease back to 114p at the end of October.

The Business

Filtronic designs and manufactures RF-to-mmWave components and subsystems for mission-critical communication networks.

The group develops products for telecommunications infrastructure, aerospace and defence, space, test & measurement, and critical communications.

NSIP Award

This morning the company has announced that it has been awarded £1.2m in funding from the UK Space Agency's National Space Innovation Programme to develop a 550W Ka-Band Solid-State Power Amplifier, designed to offer leading linear power performance and enable a seamless transition from older Travelling Wave Tube Amplifier technology for future satellite systems.

This development is strategically important for the expansion of non-geostationary constellations and next-generation services, supporting high throughput Satcom and enhancing the commercialisation of UK space technologies.

Management Comment

CEO Nat Edington stated that:

"This award reflects the strength of our innovation pipeline and our place in the UK's space ecosystem.

The 550W Ka-Band SSPA is a significant step change in solid-state performance, offering leading linear power in a TWTA-compatible form factor.

It will enable operators to transition from travelling wave tube systems with reduced operating expense and enhanced reliability, helping to support more sustainable and future-ready satellite networks.

Built on strategic industry partnerships and a proven record of innovation, our integrated design and manufacturing model delivers scalable, cost-efficient solutions that earned us selection under this leading programme."

UK Space Agency Comment

UK Space Agency Investment Director, Dr Craig Brown stated that:

"Filtronic's project is a great example of the ambition behind the National Space Innovation Programme, turning cutting-edge UK research into commercially viable solutions that strengthen our global competitiveness.

By advancing high-power solid-state amplifier technology, this project not only supports more resilient satellite networks but also accelerates the UK's journey towards a sustainable and innovative space economy."

My View

The group is still in an early-stage of its development, even so its potential is gi-normous.

The shares will, without doubt, be expected to react positively in 2026 to any items of good news and market anticipation of future space sector contracts.

The 175p peak could well be beaten within the next few weeks, while suggestions that they could break 200p early next year hold merit.

I now set a new and easily achieved Target Price of 175p.

(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)