MTI Wireless Edge – significant defence sector repeat order shines the light on this £48m company, with a growing backlog of orders, noteworthy in such globally hostile times, now 54p, brokers TP 80p

18.02.2025

Last Wednesday, 12th February, MTI Wireless Edge (LON:MWE) announced a significant repeat order from a system house in Israel, worth $4m for the manufacture of military antennas.

CEO Moni Borovitz sounded absolutely delighted when imparting the news to the group’s investors.

"We are thrilled with this repeat manufacturing order as it is one of the largest orders we have ever received and demonstrates our ability to deliver high-quality services and innovative solutions to meet our clients' needs.  

The order entails the supply of state-of-the-art antennas and is integral to an end use which is considered to be one of the most advanced systems of its kind in the world.

The antennas are designed to deliver unmatched accuracy and robust communication, leveraging our sophisticated and complex production technology.

This win and others like it, add to our growing reputation for providing highly innovative antenna solutions and we look forward to continuing to work closely with defence companies from around the world."

The Business

The Israel-based group is a technology group focused on comprehensive communication and radio frequency solutions across multiple sectors.

The group operates through three core divisions: Antenna; Water Control & Management; and finally, the Distribution & Professional Consulting Services division.

The Antenna division

MTI is a world leader in the design, development and production of high-quality, state-of-the-art, and cost-effective antenna solutions including Smart Antennas, MIMO Antennas and Dual Polarity Antennas for wireless applications. MTI supplies antennas for both military and commercial markets from 100 KHz to 174 GHz.

Internationally recognised as a producer of commercial ‘off-the-shelf’ and custom-developed antenna solutions in a broad frequency range, MTI addresses both commercial and military applications.

MTI supplies directional and omnidirectional antennas for outdoor and indoor deployments, including smart antennas for 5G backhaul, Broadband access, public safety, RFID, base station and terminals for the utility market.

Military applications include a wide range of broadband, tactical and specialised communication antennas, antenna systems and DF arrays installed on numerous airborne, ground and naval, including submarine, platforms worldwide.

The Water Control & Management division

Via its subsidiary, Mottech Water Solutions, MTI provides high-end remote control and monitoring solutions for water and irrigation applications based on Motorola's IRRInet state-of-the-art control, monitoring and communication technologies.

As Motorola's global prime-distributor Mottech serves its customers worldwide through its international subsidiaries and a global network of local distributors and representatives.

With over 25 years of experience in providing customers with irrigation remote control and management, Mottech's solutions ensure constant, reliable and accurate water usage, increase crops quality and yield while reducing operational and maintenance costs providing fast ROI while helping sustain the environment.

Mottech's activities are focused on the market segments of agriculture, water distribution, municipal and commercial landscape as well as wastewater and storm-water reuse.

The Distribution & Professional Consulting Services division

Via its subsidiary, MTI Summit Electronics, MTI offers consulting, representation and marketing services to foreign companies in the field of RF and Microwave solutions and applications including engineering services (including design and integration) in the field of aerostat systems and the ongoing operation of Platform subsystems, SIGINT, RADAR, communication and observation systems which is performed by the Company.

It also specialises in the development, manufacture and integration of communication systems and advanced monitoring and control systems for the Government and defence industry market.

Broker’s View

Research analyst Rob Sanders, at Shore Capital Markets, has a ‘Fair Value’ estimate on the group’s shares at 80p.

His estimates for the year to end-December 2024 are for $48.2m ($45.6m) revenues, with adjusted pre-tax profits of $4.9m ($4.8m), earnings of 4.5c (4.6c) and paying a dividend of 3.3c (3.1c) per share.

For the year now underway he looks for $51.5m revenues, $5.2m profits, 4.7c earnings and a 3.4c dividend.

Into the 2026 year he suggests revenues of $55.0m, $5.6m of profits, 4.9c earnings and a dividend of 3.6c per share.

My View

Ahead of this group’s Final Results for 2024 being published on Monday 17th March, I rate the shares as a potential upward mover in anticipation of further good news.

They are now trading at 54p and look very capable of a stronger push on the back of further order news.

I am very confident of my Target Price of 62p being achieved in a short time frame, possibly aided by good comment from the Finals due within the next month.

(Profile 25.09.24 @ 49.50p set a Target Price of 62p)