TTM Technologies (TTMI) Stock Forecast & Price Target

TTM Technologies Inc. has demonstrated significant growth in key areas, with a 34% year-over-year increase in networking sales due to AI-related demand, contributing positively to the company’s recovery. The company reported an EBITDA of $109 million, representing a 35% increase year-over-year, and achieved a record A&D program backlog of $1.56 billion, showcasing strong demand in its Aerospace and Defense segments. Additionally, Q4 revenues grew 14% year-over-year to $651 million, surpassing both company guidance and consensus expectations, further solidifying a positive financial outlook for TTM Technologies.

TTM Technologies Inc. faces a negative outlook primarily due to declining financial metrics, with a reported gross margin of 20.5%, which has decreased by 150 basis points quarter-over-quarter and is down from 21.3% in the same quarter of the previous year. The company's book-to-bill ratio has also contracted to 1.09 from 1.20 in the prior quarter, indicating a slow-down in new orders relative to shipments, while the 90-day backlog, totaling $613 million, is under pressure and subject to potential cancellations. Additionally, the operating margin has fallen to 10.4%, declining 170 basis points from the previous quarter, and the Medical, Industrial & Instrumentation segment has reported a year-over-year sales decrease of approximately 7%, highlighting ongoing challenges in demand and inventory management.