Analysts have raised their fair value estimate for TTM Technologies from $59 to $62.75 per share, citing stronger than expected Q2 performance and improved growth outlook across core business segments.

Analyst Commentary

Bullish analysts highlighted several encouraging trends and performance metrics that contributed to the upward revision in TTM Technologies’ valuation outlook.

Bullish Takeaways

• Stronger than expected second quarter revenues and earnings per share exceeded consensus estimates, demonstrating robust execution across core operations.
• Notable strength in the Aerospace and Defense and Data Center verticals contributed significantly to top-line growth. These sectors are seen as key drivers of sustained demand.
• Diversified commercial markets also posted impressive results, indicating broad-based momentum across the company’s customer base.
• The positive surprise in results is viewed as an indicator of improved operational efficiency and growth trajectory, supporting a higher fair value estimate.

Bearish Takeaways

• While recent outperformance is encouraging, continued execution in all verticals remains critical to justifying the higher valuation.
• Market volatility and potential demand fluctuations in end markets could temper long-term growth expectations.
• Any slowdown in major verticals such as Aerospace and Defense or Data Center could impact margin expansion and the near-term earnings outlook.

What's in the News

• TTM Technologies has introduced new ultra small RF crossover and splitter components, enhancing its product offerings for Telecom, Test and Measurement, and Mil-Aero markets. The focus is on space-saving and high-frequency capabilities (Product-Related Announcements).
• Edwin Roks, Ph.D., has been appointed as the new Chief Executive Officer, effective September 2, 2025. He will succeed retiring CEO Thomas T. Edman, who will remain an advisor during the transition (Executive Changes, CEO).
• The company completed a share buyback, repurchasing 4,494,016 shares or 4.38% for $76.79 million, as part of the program announced in May 2023 (Buyback Tranche Update).
• TTM issued financial guidance for Q3 2025, estimating revenues between $690 million and $730 million (Corporate Guidance, New/Confirmed).
• Thomas T. Edman’s retirement as CEO marks the end of a period of transformative growth, operational excellence, and expanded market presence across Aerospace and Defense, Data Center Computing, and Networking for AI applications (Executive Changes, CEO).

Valuation Changes

• The Fair Value Estimate has increased from $59 to $62.75 per share, reflecting analysts' improved outlook.
• The Discount Rate has risen slightly from 8.68% to 8.72%, suggesting a modest adjustment in perceived risk.
• The Revenue Growth projection has moved upward from 7.18% to 7.50%.
• The Net Profit Margin estimate has edged up from 8.09% to 8.18%.
• The Future P/E Ratio forecast has increased from 30.72x to 32.07x, implying a higher valuation for expected earnings.