Firan Technology Group is still a buy, this analyst says

Beacon Securities analyst Russell Stanley maintained a “Buy” rating and $17.00 target price for Firan Technology Group (Firan Technology Group Stock Quote, Chart, News, Analysts, Financials TSX:FTG) in an Aug. 28 report, saying the company’s fundamentals remain strong despite recent share price volatility tied to sector peers.

Toronto-based Firan manufactures printed circuit boards and aerospace assemblies, with a focus on the aerospace and defence market.

Stanley said Firan shares fell 16% in mid-August, bottoming at $12.80 on Aug. 20 before rebounding, in what he described as “sympathy selling” linked to a pullback in TTM Technologies. “As discussed in our August 1 note, based on the Q2 results and comments from FTG’s key direct and indirect customers, we understand the demand picture for FTG continues to look very strong,” he said.

Firan now trades at 8.2 times his fiscal 2026 Adjusted EBITDA forecast, a 28% discount to TTM’s 11.3 times multiple and a 56% discount to the 18.8 times average for the broader aerospace supplier group.

“FTG continues to offer investors a stronger margin and EBITDA growth profile and a more attractive valuation,” Stanley said.

He noted TTM’s second-quarter results exceeded consensus on revenue, Adjusted EBITDA and EPS, prompting all four covering analysts to raise forecasts and price targets. However, its reported book-to-bill ratio of 0.9 times overall and 0.7 times for aerospace and defence raised some concerns.

“During the conference call, management added that the A&D backlog remains strong at almost US$1.5-billion and demand is still healthy, with the low book-to-bill a reflection of order timing and lumpiness,” Stanley said. He added that Firan’s correction was likely a spillover effect from this dynamic.

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

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