The Firan pullback is a buying opportunity, Beacon says

Beacon Securities analyst Russell Stanley maintained his “Buy” rating and $17 target price on Firan Technology Group (Firan Technology Group Stock Quote, Chart, News, Analysts, Financials TSX:FTG) in an Aug. 20 report, calling the recent pullback a buying opportunity.

Firan shares have fallen 16% from their 52-week and all-time high of $12.80 on Aug. 13. Stanley attributed the decline in part to weakness in a key peer.

“While the broader market and some defence-themed names have lost some steam, we believe the share price performance of a key valuation comparable has contributed,” he said, pointing to TTM Technologies, down 22% since peaking on July 31.

“Between TTMI’s commentary, as well as that from FTG’s key direct/indirect customers … the demand picture for FTG continues to look very strong, and we therefore view this pullback as a buying opportunity,” he said.

Stanley noted that Firan now trades at 7.4 times Beacon’s fiscal 2026 Adjusted EBITDA forecast, a 22% discount to the 9.8 times multiple applied to TTM. Beacon projects a 28% Adjusted EBITDA compound annual growth rate for Firan through 2026, compared with consensus estimates of just 6% for TTM. He expects the second half of 2025 to be catalyst-rich for Firan, citing potential product certification progress, contract wins, Q3 results in October, and possible M&A activity.

Firan, based in Toronto, designs and manufactures printed circuit boards and aerospace components for the defence and aviation industries, with operations in Canada, the United States, and China. The company employs about 750 people.

Stanley emphasized the comparison with larger rival TTM, which also counts aerospace and defence as its biggest market but is more diversified across other end markets.

TTM’s second-quarter results beat consensus on revenue, Adjusted EBITDA, and Adjusted EPS, prompting all four covering analysts to raise forecasts and price targets. However, Stanley said one detail gave investors pause: “the print did include one notable, apparent fly-in-the-ointment: a book-to-bill ratio of 0.9x for the quarter, and 0.7x for the A&D business in particular.” Management stressed the backlog remains strong at nearly US$1.5-billion, with order timing creating the dip.

Firan also announced a leadership change on July 30 with the retirement of its CEO and appointment of a successor.

“However, we ultimately believe that the soft book-to-bill ratio has driven that TTMI pullback, which has likely spilled over into FTG,” Stanley said. “FTG offers investors a stronger margin/EBITDA growth profile and a more attractive valuation.”

Stanley forecasts Adjusted EBITDA of $35-million on $193-million in revenue in fiscal 2025, improving to $42-million on $216-million in fiscal 2026.

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