Filtronic – will next week’s Finals further illustrate this group’s massive potential, shares 260p, Berenberg Target Price now up to 440p
- Mark Watson-Mitchell
- Jul 27
- 5 min read
Mark Watson-Mitchell - 27.07.2026
On Tuesday, 4th August, the Sedgefield-based Filtronic (LON:FTC) will announce its Final Results for the year to end-May.
The market reaction to the figures and the accompanying Statement could see the shares swing wildly – but do not let that bother you, especially if you are a patient investor in potentially mega-growth businesses.
And that is exactly what this £569m-capitalised group is – mega-growth!
In fact, for its shares, now 260p, Space really is the limit.
The recent IPO scramble for the equity in Filtronic’s biggest client – Elon Musk’s SpaceX – saw the shares of any quoted company connected with the Space sector blasting off into the stratosphere.
That saw the FTC price hit 480p on Thursday, 21st May.
But just like shooting rockets falling to earth, the shares eased back to 210p by Monday, 29th June.
However, I really do consider that Filtronic is a winner in the making and that its shares are long-term winners too!
The Business
Filtronic is at the leading edge of advanced microelectronics globally, specialising in the design and manufacture of mission-critical communication networks.
Operating from two global manufacturing sites and three engineering centres of excellence, the company delivers solutions that span the full RF spectrum.
An extensive patent portfolio highlights its ongoing drive for innovation and technological leadership.
With a track record of over 45 years, the group’s technology is trusted across high-performance sectors including space, aerospace, defence, telecoms infrastructure and critical communications.
The company develops core IP building blocks and transforms them into highly customised solutions for high-growth target markets.
Filtronic's expertise enables seamless data transmission, delivering greater bandwidth, lower latency and enhanced connectivity.
The group has successfully coupled this engineering expertise with investment in state-of-the-art production equipment that enables the rapid transition of a turn-key solution from product development to full-scale, high-quality manufacturing, at volume.
The strategic markets of LEO space, aerospace and defence are the focus of current product development programmes, where Filtronic can add significant value, realise long-term sustainable margins and deliver shareholder value.
Recent Additional Order
On Tuesday, 23rd June, the group announced that it had secured a second contract win with a US-based customer for on-satellite technology.
The contract is valued at approximately $0.5m (£0.4m), as part of an initial development phase, to design a state-of-the-art high-frequency module.
The award follows the $8.0m (£6.0m) contract, announced in March, with the same customer and deepens the relationship with a new technology offering for use on satellite payload, reinforcing Filtronic's growing position across the satellite communications market.
The programme supports advanced connectivity applications requiring high-performance, high-bandwidth and low latency at mmWave frequency.
This design-stage engagement is a precursor to further stages in the programme and potentially leading to volume manufacture.
Final Trading Update
On the same day, the group issued a Trading Update for the year to end-May.
It stated that it expects to deliver adjusted EBITDA slightly ahead of market expectations and revenue in line with market expectations for FY2026, supported by robust execution across customer programmes and continued progress in broadening its customer base.
The Board expects to report revenue of at least £55.5m, and adjusted EBITDA of at least £11.1m.
Cash at bank was £13.4m, with net cash, when excluding right-of-use property leases, of £11.3m.
The trading year marked a further step in the group’s transformation into a business operating at greater scale, with increasing customer diversification and enhanced operational capability, as demonstrated by:
Expansion of Filtronic's relationship with SpaceX through the previously announced multi-year $62.5m next-generation GaN E-band contract;
Further contract wins across the US and European space and defence markets;
Completion of next-generation high-power mmWave technologies; and
Completion of the group's new self-funded headquarters and manufacturing facility in Sedgefield, which is now fully operational with capacity to support revenues in excess of £200m per annum.
Management Comment
At that time, CEO Nat Edington stated that:
"The additional US contract announced today reflects the strength of our customer relationships and reinforces the expanding opportunity landscape for our specialist complex RF technologies.
Alongside our recent design wins, which we believe have the potential to be transformational for the business over time, and a strong order book, we are building increasing visibility across key programmes and entering FY2027 with real momentum and confidence.
FY2026 marked another year of strong strategic progress, with continued investment in technology, operational capability and customer diversification strengthening our foundations for long-term growth.
Together, these actions are positioning the Group to capture the significant opportunities ahead and convert growing market demand into sustained value creation."
The Equity
There are some 219.94m shares in issue.
Larger holders include David and Monique Newlands (7.70%), Aberdeen Group (7.37%), Tidal Investments (6.68%), Schroder Investment Management (4.96%), Legal & General Investment Management (4.82%), Canaccord Genuity Group (4.43%), Dowgate Wealth (4.29%), Mark and Diana Dixon (3.64%), Harwood Capital (3.39%), Morgan Stanley (3.00%), Driehaus Capital Management (2.94%), T Rowe Price (2.84%), Hargreaves Lansdown Fund Managers (2.63%), Rathbones (2.48%), Octopus Investments (2.43%), Barclays Bank (2.31%), and Charles Schwab Investment Management (2.26%).
Analyst Views
The quartet of analysts at Berenberg – Jon Byrne, William Larwood, Alex Short and Dylan Jones – rate the group’s shares as a Buy, having recently upped their Target Price to 440p (360p).
They consider that:
“The shares are a rare way to gain exposure to the space infrastructure build-out and they think that the on-satellite opportunity is increasing Filtronic’s already substantial addressable market.”
Edward Stacey and Kimberley Carstens, analysts at Cavendish Capital Markets, also have the shares as a Buy and are looking to upgrade their estimates and TP upon next week’s results.
Analyst Katherine Thompson, at Edison Investment Research, is also very positive about the company, stating that:
“In our view, the SpaceX relationship, the widening customer base and product range in the space market, and the growing penetration of the aerospace and defence market all provide avenues for sustainable growth.”
Harold Evans and Roddy Davidson, at Singer Capital Markets, have a 275p Target Price on the shares, having switched their opinion from Buy to Hold.
My View
Since I first profiled this group's shares in February 2022, they have been up over 4130%, before falling back to just 2240% up at the current 260p.
The SpaceX connection was a ‘catapult’ into action, it still has a big ‘option position’ on Filtronic’s equity.
The group is now capable of handling more than four times the business that it handled in the last year.
Next week’s results will be of little surprise however, I do foresee the group’s shares starting to pick up very soon, it could only take just another one or two contract wins to get them running again.
They could quickly burst back over the 300p level and into trading the 330p to 360p price range.
Today SQC Research sets a new Target Price for the group's shares at 320p.
(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*)
(Profile 27.07.26 @ 260p set a Target Price of 320p)
Comments