TTM Technologies Inc. (TTMI)
TTM Technologies is a leading global manufacturer of printed circuit boards (PCBs), RF & microwave assemblies, specialty radio-frequency components, and related engineered electronic solutions. It serves multiple end-markets: aerospace & defense; automotive; medical, industrial & instrumentation; data center computing; networking & communications.
Needham has just raised its 12 month target price on TTM Technologies to $65 from $56, citing growing optimism about the company’s medium-term growth trajectory. The revised outlook is underpinned by expectations of accelerating demand in AI data center infrastructure and defense markets, two sectors where TTM has established competitive positioning.
In the AI-driven cycle, data center operators are rapidly scaling capacity, driving heightened demand for high-performance printed circuit boards (PCBs) and electronic interconnect solutions—areas where TTM is a key supplier. The company’s presence in the defense electronics market offers a stable revenue stream, supported by long-term contracts and government-backed spending priorities.
Needham also sees potential upside from TTM’s existing production capacity, suggesting that utilization rates could rise meaningfully without immediate heavy capital expenditures, thereby enhancing operating leverage and margin expansion. If demand accelerates as anticipated, the company could see both earnings outperformance and a stronger free cash flow profile.
Overall, the revised target reflects analyst confidence that TTM is positioned to benefit from secular growth themes in AI infrastructure and defense modernization, while also leveraging its manufacturing scale to capture incremental profitability.
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I’m curious how TTM will balance the growth in demand for PCBs from AI infrastructure with their commitment to the defense sector. Do you think they could face any capacity issues as both markets scale rapidly?