Will The Filtronic Share Price Rally Continue? Edison Raises Outlook

Filtronic (LON: FTC) has seen its shares surge over 40% in the past month and gained nearly 125% over the past year, and analysts at Edison now see more room for growth.

Following the company’s 6 May trading update, Edison raised its revenue and profit forecasts for FY25 and FY26, citing stronger-than-expected demand and expanded manufacturing capacity. 

The research house now expects FY25 revenue of £54.9 million, up nearly 10% from previous estimates, with adjusted EBITDA forecast to rise 14.1% to £16.1 million. Forecast revenue for FY26 was also upgraded to £50 million.

Filtronic said that its newly scaled manufacturing operations are fully operational, enabling the business to meet increased demand, particularly following another large order from SpaceX. 

Edison believes the strengthened relationship with SpaceX, along with anticipated contracts from aerospace and defence clients, positions the firm for sustainable long-term growth.

CEO Nat Edington said: “Our continued investment in engineering and manufacturing has positioned us to meet growing demand, and we are confident in the trajectory of the business as we scale to capitalise on future opportunities.”

Edison’s reverse DCF valuation suggests the current share price prices in annual revenue growth of 12% through to FY34, implying investors are betting on long-term momentum. 

“In our view, the strengthened relationship with SpaceX, the potential to widen the customer base in the space market and the growing penetration of the aerospace and defence market all provide avenues for sustainable growth,” stated Edison.