TAT Technologies: Down 27%, But Still A Strong Buy

Dhierin Bechai Investing Group Leader Follow Summary TAT Technologies remains a Strong Buy, supported by robust APU demand, expanded Honeywell agreements, and a growing $615M backlog. Despite 22.8% Q2 revenue growth, cash flow remains weak due to working capital absorption and delayed collections, making cash conversion a critical watch item. Supply chain constraints, especially in landing gear, and potential shareholder dilution from inorganic growth are key risks to TATT’s outlook. My revised price target is $45.20 (38% upside) on 2027 earnings, with $55.50 for 2028; margin and cash flow improvements are expected in future years. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » MatusDuda/iStock via Getty Images Shares of TAT Technologies ( TATT ) have lost 27% of their value since my last report . I believe that this is driven by a somewhat soft growth in H1 due to supply chain challenges, lacking This article was written by Dhierin Bechai 24.94K Followers Follow Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.