Benchmark reiterated its buy recommendation for TAT Technologies on Tuesday, raising its price target to $66 from $65 while noting the company’s supply chain constraints have largely subsided.
The analyst cited Q2 2026 results that exceeded expectations, with revenue climbing 22.8% year-over-year to $52.9 million, outpacing the $44.9 million consensus. Adjusted EBITDA rose 22.7% to $7.4 million, excluding a one-time gain, while the margin expanded to 14.0% against a $5.7 million estimate. Diluted EPS reached $0.61, more than doubling from $0.30 in the prior-year period.
TAT Technologies, which provides aviation components and services, reported that supply chain disruptions that weighed on its Q1 2026 results have been resolved, according to management’s remarks during a recent non-deal roadshow. Benchmark highlighted underlying drivers including expanding commercial fleets, rising passenger and cargo traffic, and a growing backlog. The company also strengthened its partnership with Honeywell and is transitioning toward positive free cash flow generation.
The stock, trading at $37.45, remains 42% below Benchmark’s revised target and 42% below its 52-week high of $64.50. The firm’s valuation multiples suggest a forward EV/EBITDA of roughly 11x based on fiscal 2027 estimates, with a PEG ratio of 0.69. B.Riley separately maintained its buy rating while lifting its price target to $65.
TAT Technologies’ shares have declined 32% over the past six months, even as operational improvements and margin recovery take hold.
