Assessing TTM Technologies (TTMI) Valuation After Needham Growth Conference AI And Defense Outlook

Why TTM Technologies is Suddenly on Investors’ Radar

TTM Technologies (TTMI) has jumped into focus after management used the Needham Growth Conference to lay out ambitious multi year revenue and earnings targets tied to aerospace, defense, and AI data center demand.

See our latest analysis for TTM Technologies.

That conference message has arrived after a sharp shift in sentiment, with the share price at $96.52 and strong recent momentum, including a 90 day share price return of 65.13% and a very large 1 year total shareholder return that signals investors have rapidly repriced the story.

If AI infrastructure and defense hardware are on your radar after TTM, it could be a useful moment to scan other names in the sector using aerospace and defense stocks.

With TTMI now trading near its all time high and recent returns very large, investors are asking a core question: is the current price still leaving upside on the table, or has the market already priced in the growth story?

Most Popular Narrative: 19.5% Overvalued

Against the last close at US$96.52, the most followed narrative points to a fair value of US$80.75, framing the current price as rich relative to its modeled cash flows.

Ongoing expansion into higher-value engineered solutions and advanced manufacturing capabilities, particularly through new capacity in Penang and Syracuse, as well as product mix shifts, increases pricing power and drives gross margin improvements over time, enhancing net margin profile.

Read the complete narrative.

Curious what has to happen for that US$80.75 fair value to stack up? Revenue growth, margin improvement and a future earnings multiple all have to work together. The narrative lays out specific earnings and profit assumptions across several years. It even builds in a required P/E that sits well above the sector average. Want to see exactly how those moving parts connect into one valuation story?

Result: Fair Value of $80.75 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on smooth execution, and issues like slower ramp up at Penang or underutilized, higher cost U.S. capacity could quickly challenge that optimistic setup.

Find out about the key risks to this TTM Technologies narrative.

Build Your Own TTM Technologies Narrative

If that framework does not quite match how you see TTMI, you can test the assumptions yourself, shape your own thesis, and Do it your way in just a few minutes.

A great starting point for your TTM Technologies research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Ready for more investment ideas?

If TTM has sharpened your focus, do not stop here. Broaden your watchlist now so you are not late to the next opportunity.

• Spot potential mispricing early by scanning these 887 undervalued stocks based on cash flows. This may offer more attractive cash flow profiles than the market currently reflects.
• Zero in on next generation growth themes with these 25 AI penny stocks and see which companies are building the infrastructure and tools behind AI demand.
• Target income focused opportunities using these 12 dividend stocks with yields > 3%. This may suit investors looking to prioritize yield in their portfolios.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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