Is Firan Technology Group stock a buy?

Firan Technology Group’s (Firan Technology Group Stock Quote, Chart, News, Analysts, Financials TSX:FTG) AFIRS Edge+ product has been approved for use on the Airbus A319/320/321 family, expanding its regulatory clearance in major global markets.

In a July 21 note, Beacon Securities analyst Russell Stanley maintained a “Buy” rating and $17.00 target after the company received a Supplemental Type Certificate from the European Aviation Safety Agency. Firan secured similar approval in May from Transport Canada for the Boeing 737NG aircraft line.

“We understand this product is the only 5G wireless quick access recorder (WQAR) on the market,” Stanley said. “These recorders collect in-flight data used to improve safety, operational efficiency, and innovation efforts. Particularly given the AFIRS Edge+ plug-and-play installation design, we expect it to see strong demand as a replacement for an existing install base of 2G and 3G recorders as those older networks are retired.”

With initial certifications in place for both Airbus and Boeing aircraft, Firan plans to pursue regulatory approvals in other regions in the coming months.

“Bigger picture, this development represents further progress toward monetizing the revenue opportunity from the FLYHT Aerospace acquisition completed in December,” Stanley said. “This product alone could represent a $200M market opportunity over time.

GE Aerospace, a major customer of Firan, raised its guidance after reporting stronger-than-expected revenue, Adjusted EBITDA, and Adjusted diluted EPS last Thursday.

“GE also increased its F2025 guidance across its core metrics, featuring revenue growth now expected in the mid-teens v. the prior low-double digit guide, with management citing stronger commercial demand v. its outlook in April,” Stanley said. “GE also increased its F2028 outlook, featuring a double-digit adj revenue CAGR through F2028, up from the prior high-single-digit target, and operating profit of $11.5B, up from $10.0B previously.

GE, which supplies both Boeing and Airbus, based its forecast on the expectation that both aircraft makers will achieve their planned production increases over the next three to four years.

Stanley thinks that Firan will generate $35-million in Adjusted EBITDA on revenue of $196-million in fiscal 2025. He expects those figures to improve to $42-million in EBITDA on $218-million in revenue in fiscal 2026.

Stanley said Firan is trading at 7.6 times Beacon’s 2026 Adjusted EBITDA forecast, a 26% discount to the 10.3 times average for PCB companies and a 60% discount to the 18.9 times average for aerospace suppliers. He pointed to contract wins, potential M&A, and Q3 results in October as possible catalysts.

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