Firan Technology. Buy, Sell or Hold?

Beacon Securities analyst Russell Stanley says Firan Technology Group (Firan Technology Group Stock Quote, Chart, News, Analysts, Financials TSX:FTG) is still undervalued despite a strong rebound in global commercial aircraft deliveries and improving peer sentiment across the aerospace and defence supply chain.

In his Jan. 13 report, Stanley reiterated a “Buy” rating and maintained his $17.00 target price, arguing that improving aircraft production visibility continues to support pull-through demand for Firan’s commercial aerospace business, which accounts for roughly 60% of revenue, with defence representing about 40%.

Stanley said that while Firan has prioritized deepening its penetration with Airbus, Boeing remains an important end customer. Boeing reported fourth-quarter commercial jet deliveries of 160 aircraft, slightly ahead of consensus expectations of 157, bringing full-year deliveries to 600 aircraft, a 72% year-over-year increase following production disruptions in fiscal 2024. Current consensus estimates for Boeing and Airbus imply aircraft delivery growth of about 15% in fiscal 2026 and 13% in fiscal 2027, which Stanley views as supportive of sustained demand for Firan’s commercial programs.

Stanley also pointed to recent commentary from TTM Technologies, which he views as Firan’s closest valuation comparable. TTM shares rose sharply following investor conference commentary highlighting strong aerospace and defence demand and improved visibility. While TTM has diversified into AI-related markets, management emphasized that aerospace and defence provide greater backlog visibility and stickier customer relationships, a dynamic Stanley believes validates Firan’s focused strategy.

Despite these favourable industry signals, Stanley highlighted that Firan continues to trade at a significant valuation discount. At just over 10x fiscal 2026 adjusted EBITDA, Firan trades at an estimated 51% discount to TTM, which now trades near 21x. Stanley believes this gap remains unjustified given Firan’s earnings growth outlook, with his model forecasting approximately 23% EPS growth in fiscal 2026.

On the technical side, Stanley said that the shares have recently broken through a long-standing resistance level and moved to new all-time highs. Near-term catalysts include fourth-quarter results, potential contract wins, and M&A activity.

Stanley expects Firan to generate $33-million in Adjusted EBITDA on revenue of $190-million in fiscal 2025, improving to $38-million in Adjusted EBITDA on revenue of $212-million in fiscal 2026.

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.

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