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Filtronic downgraded to sell despite growth, due to valuation and profit concerns

Analyst Insights
17 Aug 2026
Seeking Alpha
View Source
Bearish
pluang ai news

Filtronic has been downgraded to a sell rating despite operational improvements and diversification beyond SpaceX. While customer concentration decreased and new contracts and capacity expansions were achieved in FY2026, adjusted EBITDA fell 34% and margins tightened to around 20%. The FY2027 outlook depends on successful ramp-up of GaN E-band technology, doubling defense revenue, and further customer diversification, but risks from execution and dilution remain high. Projected sales and EBITDA growth through 2028 offer limited upside, with meaningful returns expected only after 2028.

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