5Mes·

Freedom Broker raises Frequency Electronics' stock rating based on revenue growth target

I'm going to stay invested. After all, the USA still wants to go to Mars.

Summary of the article

Freedom Broker downgrades Frequency Electronics (FEIM) from hold to Buy up and raises the price target significantly from USD 53 to USD 65. The reason for this is the new, ambitious minimum sales target of USD 150 million by FY 2029which corresponds to more than a doubling of current sales.

Key points

New sales target: USD 150 million by 2029 → requires >30% annual sales conversion rate over three years.
Growth driver:
Record-high, financed order backlog
Expansion of the order book
Strength in space and defense segments
Future markets such as quantum sensor technology, satellite constellations, space research, alternative PNT systems

Key message

Despite a weak quarter, Freedom Broker sees strong structural growth and expects FEIM to scale sales significantly. However, the share is already highly valued, leading to mixed investor sentiment.

Freedom Broker upgrades Frequency Electronics stock rating on revenue growth target By Investing.com

2 Commenti

ScaleLimits@ScaleLimits

5Mes

For me, the interesting part of $FEIM (also in my portfolio) is not the space fantasy itself, but the infrastructure behind it. The more topics such as satellite networks, defense or autonomous systems scale, the more important "precise time and frequency systems" become. Without precise synchronization, many of these systems will not function stably in the long term.

$EXA (Exail Technologies, also in the depot) addresses a similar area via navigation and autonomous systems. FEIM sits deeper in the actual timing/frequency layer of the infrastructure. $INFQ (Infleqtion, also in the portfolio), on the other hand, goes even more in the direction of quantum timing and quantum navigation.

Valuation is of course now an issue at FEIM. But structural bottlenecks often look "too expensive" on the stock market for a long time.

••

Tenbagger-Capital@Tenbagger-Capital

5Mes

@ScaleLimits Yes, the quantum hype last year has already given the share a good boost. Timing is also interesting in the defense sector. Every missile and every combat drone needs 1000% timing

•