Analysts have increased their fair value estimate for TAT Technologies from $37.75 to $41.25 per share, citing sustained double-digit revenue growth, expanding margins, and greater visibility into future earnings. This shift is attributed to robust industry demand and recent positive research coverage.

Analyst Commentary

Recent research notes reflect a constructive outlook on the prospects for TAT Technologies, highlighting both strengths and potential areas of concern as the company continues to execute its strategic initiatives.

• Bullish analysts point to continued double-digit organic revenue growth as a key driver for the raised fair value and price targets. They cite robust industry demand and operational performance.
• Margin expansion remains a central theme. TAT's ongoing focus on higher-value aviation maintenance, repair, and overhaul services is supporting improved profitability.
• The significant sequential and year-over-year increase in backlog provides analysts with greater visibility into sustained growth, with expectations extending at least through fiscal year 2026.
• TAT's strategic emphasis on accretive acquisitions and targeted expansion in the attractive aerospace aftermarket industry is seen as an enabler for further scale and value creation.

• Despite a positive revenue trajectory, some analysts note sequential softness in quarterly performance. This could raise questions about consistent execution in the near term.
• There are lingering concerns over the recent sharp decline in share price, suggesting market skepticism around the sustainability of growth or broader industry sentiment.
• While backlog growth enhances visibility, translating these orders into timely revenue and profit remains subject to operational risks.
• The ongoing need for successful integration of acquisitions and delivery on margin goals introduces potential risks to achieving the elevated valuation targets.

What's in the News

• TAT Technologies announced the establishment of FutureWorks, its Center for Aerospace Innovation in Charlotte, North Carolina. The center aims to drive next-generation thermal management solutions for electric, hybrid, and hydrogen aircraft. The facility is now open with a full grand opening scheduled for November. (Key Developments)
• The company's business units, including TAT Limco, TAT Piedmont, and TAT Israel, have been unified under the TAT Technologies brand. This move streamlines operations and enhances service integration across its aerospace offerings. (Key Developments)
• TAT Technologies signed a three-year, $12 million contract to provide MRO services for Auxiliary Power Units on Boeing 777 aircraft to an international commercial carrier. (Key Developments)
• TAT Technologies was added to the S&P Global BMI Index, increasing its visibility among investors and broad market indexes. (Key Developments)
• At its November 2025 annual and special general meeting, TAT Technologies will propose increasing authorized share capital and amending articles of association, including sections related to external directors. (Key Developments)

Valuation Changes

• Fair Value Estimate has increased from $37.75 to $41.25 per share, reflecting improved outlook and growth prospects.
• Discount Rate has edged up slightly from 9.57% to 9.68%, indicating a marginal shift in risk assumptions.
• Revenue Growth Forecast has risen modestly, from 17.46% to 17.66%, signaling analyst confidence in continued expansion.
• Net Profit Margin is projected to move higher, increasing from 14.00% to 14.51%, driven by operational improvements.
• Future P/E Ratio has climbed from 19.69x to 20.71x, which points to a higher expected valuation relative to future earnings.