On Monday, Needham maintained a Buy rating on shares of TTM Technologies (NASDAQ: NASDAQ:TTMI) and raised its price target from $26.00 to $30.00. The firm's optimism is based on strong fundamentals supporting the company's growth.
The analyst noted that TTM's largest market vertical, Aerospace & Defense (A&D), which accounts for approximately 46% of year-to-date revenues, is expected to see continued growth into 2025, supported by a steady backlog.
The Data Center Computing business, representing about 20% of year-to-date revenues, is also anticipated to serve as a significant growth catalyst next year, following an expected increase of over 55% in 2024. This segment's expansion is driven by ongoing advancements in artificial intelligence (AI).
TTM's Medical (TASE:PMCN), Industrial & Instrumentation business, which comprises 14% of revenues, is projected to experience a gradual recovery in 2025. This forecast aligns with an improving macroeconomic environment after two years of sales declines.
Despite the Automotive sector, contributing 13% to TTM's revenues, likely facing a downturn for the third consecutive year in 2025, the firm remains confident in its mid-single-digit growth forecast for TTM.
The confidence in TTM's growth prospects is further bolstered by the expected continued margin expansion. The positive outlook on TTM's commercial markets and the A&D sector underpin the firm's reiteration of the Buy rating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.