TAT Technologies Back On Track After First Quarter Challenges

TAT Technologies Ltd. ( TATT ) appears to have rebounded fully from the bad news in the first quarter of this year. In the second quarter, it overcame its supply chain problems and converted pent-up demand TAT Technologies has rebounded from Q1 supply chain issues, resuming its robust growth trajectory and expanding its Honeywell partnership. I upgraded the company to Strong Buy with a $63.80 target price, reflecting a 60.95% upside from the August 7 close. TAT Technologies' backlog rose to $615 million, EPS CAGR is forecast at 20.3%, and margins are expected to improve with continued industry tailwinds. Risks include supply chain disruptions, increased customer concentration from Honeywell, and heightened competitive pressures due to the company's smaller scale.