Mti Wireless Share Price (MWE)

Good to see the recent bounce continuing. The ex-cash P/E here remains extremely low given the prospects in defence, 5G, water infrastructure etc.

I think the cat is out of the bag here - could not be held low any longer - plenty more upside to come imho - should be closer to 70p than 50p on fundamentals alone - with the whole of Europe now expanding their defence budgets there will be plenty of business for MTI to pitch for going forward - gla dyor etc.

BOOOOOM!

Shore Capital retain their 100p fair value.

They forecast 5.1c EPS this year. With now 7p per share in cash, that's an ex-cash P/E of only 10.2, with a 3.4c dividend as well.

They summarise:

"Conservative forecasts: MTI has a very strong financial platform and aims to grow sales organically and through acquisitions, with any new business incremental to margins/profits. Obviously, we have not assumed any further acquisitions in our forecasts, so given the record of earningsenhancing deals, we would view any M&A as likely to boost forecasts and shareholder value.

Outlook and valuation: MTI entered FY25F with a very strong order backlog and each of the divisions has growth drivers with, in our view, Mottech well placed to potentially see much stronger demand than we forecast for its water management and control software as evidenced by the contract announced earlier this month. The Antenna division is likely to continue to benefit from increased defence spending as well as the rollout of 5G across the world, especially India where it has a manufacturing base. Similarly, we would also expect to see good demand for the defencerelated products and services of Summit/PSK with the latter still expected to return to profitability in FY25F following restructuring.

We have a 100p fair value on the basis of a DCF analysis, which is more than corroborated were MTI to achieve a peer group average of the FY25F EV/sales multiple of 2.6x and EV/EBITDA multiple of 12.4x."

Today's Q1 results are good and have a very encouraging outlook.

Adjusted EPS is up 12% to 1.18c EPS, on 7% revenue growth, which is very good in itself.

The best part is the cash pile, which has increased in Q1 by a whopping $2m+ to $8.05m. This now backs up approaching 20% of the entire m/cap.

The main driver has been Antennas, particularly 5G and military, which should continue to thrive for the next few years. With Mottech and Summit also expected to improve this year all 3 divisions should be doing well soon.

The CEO's outlook says it all:

"We have started 2025 positively, delivering a good performance at all levels despite headwinds from adverse currency translation. Looking ahead, with the current backlog and pipeline of opportunities we expect to see growth in all three business divisions during the year.

"We believe that the underlying demand for our products is strengthening in all three of our principal markets. Demand across the globe for defence products has seen the most obvious increase. Water scarcity is a problem that increases each year and while slower, awareness is growing, which is leading to meaningful action. The roll-out of 5G networks is expanding each year and we have made strong in-roads into the substantial Indian market. Overall MTI is in a good position, Q2 is progressing well with three material contracts wins announced so far and as a Board we are confident about the outlook for the year."