Butler National: The Aerospace Transformation Is Accelerating

Fernanda Galvez Jalil 1.24K Followers Follow Summary Butler National is now driven by its Aerospace segment, which delivered 92% YoY growth and comprises 71% of revenue. Despite a 160% stock rally, BUKS trades at 12x LTM earnings, with a PEG of 0.16x, well below sector medians. I assign a Strong Buy rating, targeting $7-8/share (80% upside), based on 20% FY2027 revenue growth and 20% net margin assumptions. Key risks include customer concentration (top 5 at 33.5% of revenue) and capital intensity as Aerospace scales. recep-bg/E+ via Getty Images Investment Thesis Butler National ( BUKS ) is becoming the Aerospace company I thought the market was overlooking when I first covered it over a year ago. The casino business is still there, but Aerospace is now driving This article was written by Fernanda Galvez Jalil 1.24K Followers Follow My name is María Fernanda and I'm currently studying an MBA. My inspiration investors are Warren Buffett, Peter Lynch and Terry Smith, so I look for quality companies at a reasonable valuation. I believe that, in the long term, fundamentals are what drive the share price, so I look to predict what a business's earnings per share will do. Analyst’s Disclosure: I/we have a beneficial long position in the shares of BUKS either through stock ownership, options, or other derivatives. 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.